Sensorit inc believes the 63016 sale to albertsons 1500, Ask an Expert

Accounting

SensorIt. Inc believes the 6/30/16 sale to Albertson's ( 1,500 refrigeration sensor units) meets revenue recognition criteria and therefore the $275,000 sale on account should bebooked in 2016. Additional Information

1. If the transcation is included , SensorLt Inc.'s senior managementwill receive bonus dollars totaling $225,000. If the Transaction is not included no bonus payout will take place for fiscal year 2016 perfomance

2. According to the accountant the following adjusting entry will be needed

DR COGS $120000

CR Inventory $120000

Please describe the impact of the above on financial staments if the above transaction is recognized in 2016 and provide the relevant adjusting enteries.

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91978507

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