To entice more customers into the store on Mondays, Strassberg Company is selling a slice of pizza for $1 less on Mondays. Normally a slice of pizza sells for $3. When Barbara buys a slice of pizza from Strassberg Company on a Monday with cash, how should Strassberg Company recognize the transaction?
(a) Revenue of $3 should be recognized and $1 as a discount expense.
(b) Revenue of $2 should be recognized.
(c) Revenue of $2 should be recognized and $1 of unrealized revenue recognized.
(d) Revenue of $2 should be recognized and $1 of discount liability recognized.
Ans: (b) Revenue of $2 should be recognized.
You might also like to view...
Jordan, a manage, realizes that many employees are leaving the organization. He identifies inconvenient work timings and some of the new employment policies as the causes, Jordan decides to introduce better policies and flexible work timings to reduce employee turnover. This scenario illustrates Jordan's _____ skills.
Mary keeps record of every cupcake she has ever made and sold. She has also kept records of customer comments and entered them into a computerized accounting system called a "data warehouse". Mary wants to rebrand and has her accountant identify top sellers. What is her accountant doing?
A. product auditing B. data exploring C. data mining D. product resource management