AC 551 AC551 Unit 4 FASB Codification (Kaplan University)

AC 551 Unit 4 FASB Codification (Kaplan University)

Unit 4: FASB Codification Assignment

1. How should the $25 Referral Credit be recorded in Runway’s Income Statement— as a reduction of revenue or as a marketing expense?

2. When would Runway record the $25 Referral Credit?

What are the entries Runway would record when the $25 Referral Credit is earned by the Existing Customer?  

What are the entries Runway would record when the $25 Referral Credit is redeemed against a $100 purchase made by the Existing Customer? 

3. Runway is planning to adopt IFRSs in the near future. What is the relevant?