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 > Accounting Posted 11 Aug 2017 My Price 6.00

AuctionCo.

AuctionCo.com sells used products collected from different suppliers. Assume a customer ordered a used bicycle through AuctionCo.com for $30. The cost of this bicycle is $20 to AuctionCo.com. The bicycle will be shipped to the customer by the original bicycle owner.

 

Required:
1.

Assume AuctionCo.com takes control of this used bicycle before sale. Under this assumption, how much revenue would the company recognize?
   
   
2.

Assume AuctionCo.com never takes control of this used bicycle before sale. Under this assumption, how much revenue would the company recognize?
   
   
3.

Which assumption do you think is more appropriate for the AuctionCo.com case?
   
 
  Assumption that AuctionCo.com is the principal.
  Assumption that AuctionCo.com is acting as an agent.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 05:08 PM My Price 6.00

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