Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 18 - Revenue Recognition - Review and Practice - Using Your Judgment - Comparative Analysis Case - Page 1049: b

Answer

They are similar. 1. They both recognize revenue once the product has been shipped to the buyers (who, in this case, can be the consumers, bottlers, as well as other resellers). 2. The products are shipped in saleable conditions so that the consumers can enjoy the benefits of the product. 3. Both companies have reservations for manufacturing defects.

Work Step by Step

Both policies are similar and meet the revenue recognition criteria.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.