Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the birth of the internet in the 1990s led to the

The birth of the Internet in the 1990s led to the creation of a new...

50.1K

Verified Solution

Question

Accounting

The birth of the Internet in the 1990s led to the creation of a new industry of online retailers such as

Amazon, Overstock.com, and PCM, Inc. Many of these companies often act as intermediaries between

the manufacturer and the customer without ever taking possession of the merchandise sold. Revenue

recognition for this type of transaction has been controversial.

Assume that Overstock.com sold you a product for $200 that cost $150. The companys profit on the

transaction clearly is $50. Should Overstock recognize $200 in revenue and $150 in cost of goods sold

(the gross method), or should it recognize only the $50 in gross profit (the net method) as commission

revenue?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1- Three forces act on a point: 3 N at 0°, 4 N at 90°, and...

Statistics
Q

At the Stop​ 'n Go​ tune-up and brake​ shop, the manager has found that an SUV...

Advance Math
Q

For a single firm, explain the elasticity of demand for the good that it sells. Which...

Economics
Q

An insurance agent randomly selected 10 of his clients and checked online price quotes for their...

Basic Math
Q

Shadee Corp. expects to sell 550 sun visors in May and 320 in June. Each visor...

Accounting
Q

Suppose the Coulomb s law is defined as F12 statements will be correct K9192 721...

Physics
Q

20 rotation 900 origin D siter H 22 rotation 180 about the origin B Ay...

Geometry
Q

A manufacturing company currently uses 30 workers to load and unload trucks. Each worker can...

Basic Math
Q

If a = -3 and b = -i, then find the value of ab in...

Basic Math
Q

Find the critical value Determine the critical value for a left tailed test of a...

Statistics
Q

which of the following statements are false regarding a will

Accounting
Q

Can you answer as much as you can? Please & thank you. ...

Accounting