Homework Help Question & Answers

Dowell Manufacturing contracts to produce bumper cars for Five Flags Parks. Under the terms of the...

Dowell Manufacturing contracts to produce bumper cars for Five Flags Parks. Under the terms of the contract, Five Flags will

Dowell Manufacturing contracts to produce bumper cars for Five Flags Parks. Under the terms of the contract, Five Flags will pay Dowell a total of $60,000 when bumper cars are delivered six months later, and Five Flags can cancel the contract but must pay $48,000 to Dowell. Dowell believes that, if Five Flags cancelled the contract, Dowell could sell the bumper cars to another park. As of December 31, 2020, the job is 20% complete. How much revenue should Dowell recognize in 2020 for this contract? O a. $0 O b. $12,000 Oc. $30,000 $48,000 d. $60,000 e.
0 0
Next > < Previous
ReportAnswer #1
Answer:
Under the given Case, there is only a contract between the two parties and there is no revenue recognized till now, Since the job completion is only 20% . And also revenue will be recognized only when the title of the goods transferred from buyer to seller. Since job is only 20% completed and title remains with the Dowell, revenue recognized from the Contract is ' 0 '
Option (a) is Correct
Know the answer?
Add Answer to:
Dowell Manufacturing contracts to produce bumper cars for Five Flags Parks. Under the terms of the...
Your Answer: Your Name: What's your source?
Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Dowell Manufacturing contracts to produce bumper cars for Five Flags Parks. Under the terms of the...

    Dowell Manufacturing contracts to produce bumper cars for Five Flags Parks. Under the terms of the contract, Five Flags will pay Dowell a total of $60,000 when bumper cars are delivered six months later, and Five Flags can cancel the contract but must pay Dowell for work completed. Dowell believes that, if Five Flags cancelled the contract, Dowell could not sell the bumper cars to another park. As of December 31, 2020, the job is 80% complete. How much revenue...

  • Submit to complete this assessment Question 23 of estion 23 1 points Save A Dowol Manufacturing...

    Submit to complete this assessment Question 23 of estion 23 1 points Save A Dowol Manufacturing contracts to produce bumper cars for Five Flags Parks Under the terms of the contract, Five Flags will pay Dowell a total of $60,000 when bumper cars are delivered six months later, and Five Flags can cancel the contract but must pay $12.000 to Dowell. Dowel believes that if Five Flags cancelled the contract, Dowell could sell the bumper cars to another park. As...

  • ABC commits to manufacturing 30 rocking horses for an amusement park in Texas. Under the terms...

    ABC commits to manufacturing 30 rocking horses for an amusement park in Texas. Under the terms of the contract, the client will pay ABC a total of $ 60,000, and can cancel the contract if they choose to do so as long as they pay for the completed work. ABC believes that if the customer cancels the contract, they could sell the rocking horses to another amusement park and still make a profit. The manufacturing contract is expected to last...

  • How can we assess whether a project is a success or a failure? This case presents...

    How can we assess whether a project is a success or a failure? This case presents two phases of a large business transformation project involving the implementation of an ERP system with the aim of creating an integrated company. The case illustrates some of the challenges associated with integration. It also presents the obstacles facing companies that undertake projects involving large information technology projects. Bombardier and Its Environment Joseph-Armand Bombardier was 15 years old when he built his first snowmobile...

  • Go With the Flow, Incorporated (“Company”) designs, manufactures, and sells a broad range of...

    Web Moving Images Texts Audio Software Patron Info About IA ProjectsHome American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Children's Library | Biodiversity Heritage Library |Additional CollectionsSearch: All Media Types Wayback Machine Moving Images Animation &Cartoons Arts &Music Community Video Computers &Technology Cultural &AcademicFilms Ephemeral Films Movies News &Public Affairs Prelinger Archives Spirituality &Religion Sports Videos Television Videogame Videos Vlogs Youth Media TextsAmerican Libraries Canadian Libraries Universal Library Community Texts Project Gutenberg Children's...

Free Homework App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.