Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 11 Oct 2017 My Price 5.00

Sales Bunch o’ Balloons markets balloon

Retainer Fees as Sales Bunch o’ Balloons markets balloon arrangements to companies that want to thank clients and employees. Bunch o’ Balloons has a unique style that has put it in high demand. Consequently, Bunch o’ Balloons has asked clients to establish an account. Clients are asked to pay a retainer fee equal to about three months of purchases. The fee will be used to cover the cost of arrangements delivered and will be reevaluated at the end of each month. At the end of the current month, Bunch o’ Balloons has $43,900 of retainer fees in its possession. The controller is eager to show this amount as sales because ?oit represents certain sales for the company.??

Required
Do you agree with the controller? When should the sales be reported? Why would the controller be eager to report the cash receipts as sales?

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Oct 2017 12:10 PM My Price 5.00

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