On September 1, 2012, Electric Depot Sold 100 Laptop Computers

question 104

Multiple Choice

On September 1, 2012, Electric Depot sold 100 laptop computers at $750 each with a 120-day unconditional right of return. Customers have 90 days to pay. Based on past experience, Electric Depot estimates that approximately 1% will be returned. Which of the following is true regarding Electric Depot's December 31, 2012 financial statements?

• A)Sales of $75,000 should only be recognized after 120 days when the return privilege expires.
• B)Sales of $75,000 should be recognized in September with a reserve for returns of $750.
• C)Sales of $75,000 should be recognized in September 2012.
• D)Sales should only be recognized as the related cash is collected.

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Definitions:

Human Resource Planning

The process by which an organization ensures it has the right number and kind of people, at the right place and time, capable of effectively and efficiently completing tasks that help the organization achieve its overall objectives.

Recruitment

Is a set of activities designed to attract a qualified pool of job applicants.

Quality Workforce

A quality workforce is composed of skilled and competent individuals who collectively contribute to the organization's goals and success.

Employment Discrimination

Unfair or biased treatment of employees or job applicants based on race, gender, age, religion, disability, or other protected characteristics.