(Q) Assume you work in the technical accounting group at CoAx. Write

FIND A SOLUTION AT Academic Writers Bay

Adapted from Deloitte TrueBlood Case 16-2 “The Cable Guys.”
CoAx (the “Company”), a publicly traded company, manufactures and sells coaxial and fiber-optical cable. CoAx is evaluating the revenue recognition for the following transaction.
CableCo, a customer of CoAx, has entered into a binding written agreement to purchase 1,000 feet of 18 American wire gage (AWG) coaxial cable for $3 per foot on March 1, 2018. Under the agreement, CoAx transfers legal title of the cable to CableCo on March 1, 2018 and is entitled to payment. Because CableCo is constructing a new warehouse, it is unable to take delivery of the cable and has requested in writing that CoAx store the cable in its warehouse until construction of CableCo’s warehouse is completed. CableCo’s warehouse will be completed three months from the time of purchase, at which time CableCo is required to take delivery of the cable. CoAx stores 18 AWG coaxial cable in 10,000-foot spools (spools of cable are considered finished goods and ready for shipment). CoAs will not physically segregate the cable that CableCo will purchase; rather, the Company will designate the quantity in its inventory tracking system as “sold.” Thereby preventing the use of the cable to fulfill other customer orders. In other words, CoAx will “virtually” segregate the inventory. CoAx does not have additional performance obligations with respect to the cable purchased by CableCo.
Instructions
Assume you work in the technical accounting group at CoAx. Write a memo analyzing this transaction and draw a conclusion about when revenue should be recognized. Specifically, is it appropriate for CoAx to recognize revenue before the date on which CableCo takes delivery of the 1,000 feet of cable? In answering this question, your response should 1) discuss the general principle for revenue recognition under ASC 606, Revenue from contracts with customers, 2) identify any specific guidance applicable to this transaction, and 3) discuss how that guidance applies to the facts of the case.
Hint: ASC 606-10-55-81 through 55-84 provides specific implementation guidance on bill-and-hold arrangements and why this guidance exists (that is, why we cannot simply use the five-step framework).
Your memo will be sent to the accounting staff responsible for recording revenue transactions. It will also be kept on file to provide to the auditors and respond to any future SEC comment letters. As such, a reader should understand what conclusion you reached and how you reached it. Your memo should also be concise and easy to understand. Try to limit your memo to one page in length.
WritingAssignment1-Revenue.docx
Answers 0
Assume you work in the technical accounting group at CoAx. Write a memo analyzing this transaction and draw a conclusion about when revenue should be recognized. first appeared on Term Paper Tutors.
 
“GET THIS PAPER COMPLETED FOR YOU FROM THE WRITING EXPERTS”

• WE OFFER THE BEST CUSTOM PAPER WRITING SERVICES. WE HAVE DONE THIS QUESTION BEFORE, WE CAN ALSO DO IT FOR YOU.
• Assignment status: Already Solved By Our Experts
• (USA, AUS, UK ; CA PhD. Writers)
• CLICK HERE TO GET A PROFESSIONAL WRITER TO WORK ON THIS PAPER AND OTHER SIMILAR PAPERS, GET A NON PLAGIARIZED PAPER FROM OUR EXPERTS

QUALITY: ORIGINAL PAPER – NO PLAGIARISM - CUSTOM PAPER

Why Choose Us?

How It Works

• Click on the “Place Your Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
• Fill in your paper’s requirements in the "PAPER DETAILS" section.
• Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
• Click “CREATE ACCOUNT ; SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
• From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.

About AcademicWritersBay.com

AcademicWritersBay.comnbsp;is an easy-to-use and reliable service that is ready to assist you with your papers 24/7/ 365days a year. 99% of our customers are happy with their papers. Our team is efficient and will always tackle your essay needs comprehensively assuring you of excellent results. Feel free to ask them anything concerning your essay demands or Order.

AcademicWritersBay.com is a private company that offers academic support and assistance to students at all levels. Our mission is to provide proficient andnbsp;high quality academic servicesnbsp;to our highly esteemed clients. AcademicWritersBay.com is equipped with competent andnbsp;proficient writersnbsp;to tackle all types of your academic needs, and provide you with excellent results. Most of our writers are holders ofnbsp;master's degreesnbsp;ornbsp;PhDs, which is an surety of excellent results to our clients. We provide assistance to students all over the world.
We provide high quality term papers, research papers, essays, proposals, theses and many others. Atnbsp;AcademicWritersBay.com, you can be sure ofnbsp;excellent gradesnbsp;in your assignments and final exams.