Your Accounting Client Operates a Website Through Which It Sells

question 104

Essay

Your accounting client operates a website through which it sells products offered by other companies.You have gathered facts that indicate your client is an order-taker who receives payments from customer-buyers through its website then sends the order to the other company so they can ship their product to the customer.You have identified an accounting issue that suggests your client is acting as an agent for the other company which brings into question the way they recognize revenue from the transaction.Briefly describe you should proceed in resolving this accounting research question.

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Definitions:

Track

A path or course laid out for running or racing, or the act of following or monitoring progress or developments.

Discard

To throw away or remove something unnecessary or unwanted.

Practice

Practice involves repetitive action or exercise to acquire or maintain proficiency in a skill or activity.

Rewards

Benefits, compensation, or other forms of recognition provided to individuals as acknowledgment of their efforts or achievements.