![zanaplen27](/avatars/330.jpg)
zanaplen27
09.03.2020 •
Business
Below are the footnotes to Barnes & Noble Inc.’s 2016 annual report and membership information obtained from its website.
The Barnes & Noble Member Program offers members greater discounts and other benefits for products and services, as well as exclusive offers and promotions via e-mail or direct mail for an annual fee of $25.00, which is non-refundable after the first 30 days. Revenue is recognized over the twelve-month period based upon historical spending patterns for Barnes & Noble Members.
The Barnes & Noble Member Program entitles Members to the following benefits:
• 40% off the list price of the current hardcover Barnes & Noble Store Bestsellers.
• 10% off the marked Barnes & Noble sale price of other eligible items.
• Free Express Shipping.
• Periodic special promotions at Barnes & Noble Stores and at BN.
(A) Explain in layman's terms how Barnes & Noble accounts for the cash received for its membership program. When does Barnes & Noble record revenue from this program?
a. Barnes and Noble recognizes the membership fee revenue when the fee is received.
b. Barnes and Noble recognizes the membership fee revenue evenly throughout the year.
c. Barnes and Noble recognizes the membership fee revenue throughout the year based on historical sales patterns.
d. Barnes and Noble recognizes the membership fee revenue on a quarterly basis.
(B) How does Barnes & Noble's balance sheet reflect those membership fees?
a. Membership fees are recorded as a current asset called deferred revenue or unearned membership fees.
b. Membership fees are not recorded on the balance sheet; instead, they are recorded on the income statement as revenue.
c. Membership fees are recorded as a current liability called deferred revenue or unearned membership fees.
C. Does the 40% discount affect Barnes & Noble's income statement when membership fees are received?
a. Yes, the discount is deducted from the income statement at the time the membership fees are received. Deduction is estimated based on historical sales.
b. No, the discount is not deducted from the income statement at the time the membership fees are received. The company records 40% less revenue each time a member makes a purchase.
Solved
Show answers
More tips
- F Family and Home How to Choose a Baby Stroller: Tips from Experienced Parents...
- H Health and Medicine 5 Simple Steps to Quit Smoking for Good...
- C Computers and Internet How to Download Videos from YouTube? Simple Steps to Download Any Content...
- H Health and Medicine What is the Normal Blood Sugar Level in a Healthy Person?...
- S Style and Beauty How to Get Rid of Acne: Scientifically Proven Methods...
- L Leisure and Entertainment How to Choose the Perfect Gift for Men on February 23rd?...
- C Computers and Internet How to Delete Your Account on Odnoklassniki...
- H Health and Medicine 10 Simple and Effective Tips on How to Lose Weight in a Week...
- F Food and Cooking What s the Best Rice for Cooking Plov?...
- F Family and Home How to Get Rid of Your Neighbors?...
Answers on questions: Business
- B Business The closing balance of Jubilee Traders Inc. s trial balance is as follows: (Picture included) What is the total of the liabilities of the company? A. $25,500 B. $36,500...
- B Business Neasha Corporation reported the following results for its first three years of operation: 2006 income (before income taxes): 100,000;T 2007 loss (before income taxes): (900,000);...
- B Biology Which is not a function of cerebrospinal fluid? csf to remove waste products from the brain. csf transports nutrients and chemicals to the brain. csf to reduce the effective...
- M Mathematics Which line is perpendicular to a line that has a slope of 1/2 ? a.) line ab b.) line cd c.) line fg d.) line hj...
- M Mathematics Which function has a domain of all real numbers except x=npi, where n is any integers...
- B Biology Which statement about lightning is true? a. it is one of the most dangerous parts of a thunderstorm. b. it is an electric discharge between two similarly charged surfaces....
- P Physics How is light used to make other form of transportations safer...
- B Business Quality home made ice cream has plans to pay decreasing annual dividends of $1.50, $1.25, and $1.00 over the next three years, respectively. after that, the firm will increase...
- M Mathematics Last month, sunglass kiosk had total sales of $9,720. merchandise totaling $110 was returned. the goods that were sold cost sunglass kiosk $4,864. operating expenses for...
- M Mathematics m∠r=120 and m∠s=110. find the m∠t. the diagram is not on the scale. a. 60 b. 10 c. 110 d. 20...
Ответ:
what?
Explanation: