BU387 Lecture Notes - Lecture 11: Barter
Document Summary
Inventory remained on the shelf as we never took it out of inventory, and count those products on the shelf. If we record the sale and count the inventory on our shelf, Cogs is 0: we have an accounting issue. Implicit obligations not specifically outlined in the sales contract (i. e. constructive obligation) may also be enforced under common or other law: sales transactions, revenue/sales is described as: And what has the customer provided to us: has to be distinct and separable from everything else from the contract, buy tv: comes with warranty, ca(cid:374)(cid:374)ot e(cid:454)tra(cid:272)t (cid:449)arra(cid:374)t(cid:455) fro(cid:373) produ(cid:272)t, the(cid:455)"re i(cid:374)terrelated and interdependent. It"s a (cid:455)es or no answer: either we give a bonus or not: time value of money, abc sells a machine, price is ,000. To finance it, company agrees to finance it with 5-year note at zero interest, at the time of sale the prevailing market rate is 5%.
