This is a case study assignment that requires specific knowledge in application of Revenue Recognition Accounting Laws (FASB). I will provide the case study and Rubric for the assignment once tutor is selected. Simple accounting language is a strict requirement here.
COMPETENCIES
3108.1.1 : Explains Sources of Professional Research in Accounting
The learner explains primary and secondary sources of professional research as used in the
accounting field.
3108.1.2 : Applies Critical Thinking and Writing Skills in Accounting Research
The learner applies critical thinking and effective writing skills for the professional accountant.
3108.1.3 : Researches Accounting Issues Utilizing Public Databases
The learner researches financial accounting issues with appropriate tools, including research
question development, source validation, and sorted and validated data from public databases.
INTRODUCTION
This task helps prepare you to conduct efficient research, think critically, and provide effective
communication in an accounting situation. The new standard for revenue recognition and
Financial Accounting Standards Board (FASB) Codification will be used for the research
element of this task.
KTSB Manufacturing and Distributions Company Inc. (KTSB) has entered into an agreement to
sell computers to Ramesses II stores. You will review the attached scenario and agreement for
potential accounting issues related to Topic 606, Revenue from Contracts with Customers, in the
Accounting Standards Codification (the Codification) from the Financial Accounting Standards
Board. Once you have identified the issues, you will write a memo to KTSB’s management in
which you will summarize the agreement’s relevant facts, describe the specific accounting
issue(s), identify the appropriate authoritative guidance, analyze the issue(s), and recommend an
accounting treatment.
SCENARIO
KTSB Manufacturing and Distribution Company, Inc. (KTSB) manufactures and distributes two
computers. Model E is its basic model that is designed for everyday use. Model G is designed for
the dedicated gamer. Both models come with a three-year manufacturer’s warranty, which covers
the basic functionality of the product. Only 5% of customers historically have filed claims
related to the computers. The models are currently sold across the country via KTSB’s website,
social media, and targeted TV ads. The company has two manufacturing plants, one in the
Pacific Northwest and one in the Pacific Southwest. The company does not have retail stores.
The company’s sales of the two products have remained stable through its website, but
anticipated growth has not materialized.
On April 17, KTSB’s management entered into an agreement to sell Model E to Ramesses II.
Ramesses II is a well-established retail chain and has stores in every state in the continental U.S.
It offers personal computers, computer peripheral equipment, and consumer video and audio
products. The agreement is vital to the growth of KTSB (see the attached “KTSB and Ramesses
II Agreement”).
REQUIREMENTS
Your submission must be your original work. No more than a combined total of 30% of the
submission and no more than a 10% match to any one individual source can be directly quoted
or closely paraphrased from sources, even if cited correctly. The similarity report that is
provided when you submit your task can be used as a guide.
You must use the rubric to direct the creation of your submission because it provides detailed
criteria that will be used to evaluate your work. Each requirement below may be evaluated by
more than one rubric aspect. The rubric aspect titles may contain hyperlinks to relevant portions
of the course.
Tasks may not be submitted as cloud links, such as links to Google Docs, Google Slides,
OneDrive, etc., unless specified in the task requirements. All other submissions must be file types
that are uploaded and submitted as attachments (e.g., .docx, .pdf, .ppt).
A. After reviewing the specifics of the agreement between KTSB and Ramesses II in the
attached “KTSB and Ramesses II Agreement,” list the potential accounting issues related to
KTSB’s recognition of revenue on the sale of the computers to Ramesses II, including the
following for each accounting issue:
• the characteristics of the agreement that generated the revenue recognition issue
• the revenue recognition issue generated
B. Prepare a memo to KTSB’s management in which you address each of the issues you listed
in part A by doing the following:
1. Summarize the relevant facts of the scenario and agreement.
2. Describe the specific accounting issues.
3. Identify the appropriate authoritative guidance (topic, subtopic(s), section(s), and
subsection(s)) for each issue using the ”FASB Accounting Standards Codification
Database” web link.
4. Analyze the research for the accounting issues.
5. Recommend an accounting treatment for each accounting issue.
C. Acknowledge sources, using APA-formatted in-text citations and references, for content that
is quoted, paraphrased, or summarized.
D. Demonstrate professional communication in the content and presentation of your submission.
File Restrictions
File name may contain only letters, numbers, spaces, and these symbols: ! – _ . * ‘ ( )
File size limit: 200 MB
File types allowed: doc, docx, rtf, xls, xlsx, ppt, pptx, odt, pdf, txt, qt, mov, mpg, avi, mp3, wav,
mp4, wma, flv, asf, mpeg, wmv, m4v, svg, tif, tiff, jpeg, jpg, gif, png, zip, rar, tar, 7z
RUBRIC
A:POTENTIAL ACCOUNTING ISSUES
NOT EVIDENT
The submission does not include a list of any
potential accounting issues related to KTSB’s
recognition of revenue on the sale of computers to
Ramesses II.
APPROACHING COMPETENCE
The submission includes an incomplete list of the potential
accounting issues related to KTSB’s recognition of revenue on the
sale of computers to Ramesses II. Or the list is missing 1 or more
of the given criteria for 1 or more of the accounting issues listed.
COMPETENT
The submission includes a completed list of the potential
accounting issues related to KTSB’s recognition of revenue on the
sale of computers to Ramesses II including each of the given
criteria for each accounting issue.
APPROACHING COMPETENCE
The memo summary is incomplete or is missing relevant scenario
and agreement facts for 1 or more of the issues listed in part A.
COMPETENT
The memo includes a complete summary of the relevant scenario
and agreement facts for each of the issues listed in part A.
APPROACHING COMPETENCE
The memo includes a description of each of the specific
accounting issues identified in part A that is illogical or inaccurate
for 1 or more of the accounting issues. Or, the description does not
include relevant specifics that company management should know
about each accounting issue.
COMPETENT
The memo includes a logical and accurate description
of each specific accounting issue listed in part A including
relevant specifics that company management should know
for each issue.
APPROACHING COMPETENCE
The memo includes an inaccurate identification of the appropriate
authoritative guidance for 1 or more accounting issues identified
in part A.
COMPETENT
The memo includes an accurate identification of the appropriate
authoritative guidance for each accounting issue identified in part
A.
B1:MEMO SUMMARY
NOT EVIDENT
A summary of the relevant scenario and agreement
facts is not provided in the memo.
B2:SPECIFIC ACCOUNTING ISSUES
NOT EVIDENT
A description of each specific accounting issue is not
provided in the memo.
B3:APPROPRIATE AUTHORITATIVE GUIDANCE
NOT EVIDENT
An identification of the appropriate authoritative
guidance is not provided in the memo.
B4:ANALYSIS OF RESEARCH
NOT EVIDENT
An analysis of the research for the accounting issues
listed in part A is not provided in the memo.
APPROACHING COMPETENCE
COMPETENT
The memo includes an incomplete or illogical analysis of the
The memo includes a complete and logical analysis of the research
research for the accounting issues listed in part A, or research for 1 that addresses each accounting issue listed in part A.
or more of the accounting issues listed in part A is not included in
the analysis.
B5:ACCOUNTING TREATMENT(S) RECOMMENDATION
NOT EVIDENT
A recommendation of accounting treatments is not
provided in the memo.
C:APA SOURCES
APPROACHING COMPETENCE
The memo does not include a logical recommendation of an
accounting treatment for 1 or more of the accounting issues listed
in part A.
COMPETENT
The memo includes a logical recommendation of an accounting
treatment for each accounting issue listed in part A.
NOT EVIDENT
The submission does not include in-text citations and
references according to APA style for content that is
quoted, paraphrased, or summarized.
APPROACHING COMPETENCE
The submission includes in-text citations and references for
content that is quoted, paraphrased, or summarized but does not
demonstrate a consistent application of APA style.
COMPETENT
The submission includes in-text citations and references for
content that is quoted, paraphrased, or summarized and
demonstrates a consistent application of APA style.
APPROACHING COMPETENCE
Content is poorly organized, is difficult to follow, or contains
errors in mechanics, usage, or grammar that cause confusion.
Terminology is misused or ineffective.
COMPETENT
Content reflects attention to detail, is organized, and focuses on
the main ideas as prescribed in the task or chosen by the candidate.
Terminology is pertinent, is used correctly, and effectively
conveys the intended meaning. Mechanics, usage, and grammar
promote accurate interpretation and understanding.
D:PROFESSIONAL COMMUNICATION
NOT EVIDENT
Content is unstructured, is disjointed, or contains
pervasive errors in mechanics, usage, or grammar.
Vocabulary or tone is unprofessional or distracts from
the topic.
SKM1: Revenue Recognition
KTSB and Ramesses II Agreement
KTSB received a purchase order from Ramesses II on July 16 for 300 Model E computers to
be shipped on August 23, terms n/90. Ramesses II has the right to accept the computers
and place them on warehouse floors by September 1. The agreement transfers legal title of
the goods to Ramesses II at the point of delivery.
Ramesses II is not allowed to discount the computers to its customers to help move
inventory through its warehouses; however, the agreement allowed Ramesses II to return
any unsold product within 90 days of purchase.
KTSB developed a manufacturer’s coupon, entitling customers to $100 off Model E, with a
90-day expiration date. The coupon would allow customers to redeem it on purchases from
either KTSB’s website or through sales in Ramesses II’s stores. Ramesses II would be
reimbursed from KTSB for any coupons received from Ramesses II’s customers. The
coupon, one per customer, would be advertised nationwide on September 1, explicitly
redeemable only at KTSB and at point-of-sale at Ramesses II.
Ramesses II agreed to sell KTSB’s gift cards in addition to other retailers’ gifts cards at its
kiosks. KTSB agreed to pay a 3% commission to Ramesses II on the value of the gift cards
sold at Ramesses II. The industry standard, and the commission rate used by both
Ramesses II and KTSB, is typically 2.5%.
Ramesses II will accept all warranty claims for the computers at its warehouses within the
first year of sale to its customers, thus providing a convenient option for customers
experiencing problems with the product. KTSB has instructed Ramesses II to provide
customers who purchased the Model E the option of a refund or exchange for a new Model
E. Ramesses II will send these products back to KTSB, and KTSB will reimburse Ramesses II
for the refund or exchange amount and shipping costs. After the first year, all warranty
claims must be made directly to KTSB.
PAGE 1
EVALUATION REPORT — ATTEMPT 1 — REVISION NEEDED
Overall Evaluator Comments
EVALUATOR COMMENTS
To support you in demonstrating proficiency, you’ll be unable to resubmit your task until you’ve consulted with a Course
Instructor. Your submission validly notes that when gift cards are not redeemed they can be deemed breakage. The
comments in the individual rubric aspects below provide information about the revisions that are needed.
A. Potential Accounting Issues
Competent
B1. Memo Summary
Competent
B2. Specific Accounting Issues
Competent
B3. Appropriate Authoritative Guidance
Approaching Competence
Approaching Competence: The memo includes an inaccurate identification of the appropriate authoritative guidance for 1 or
more accounting issues identified in part A.
EVALUATOR COMMENTS: ATTEMPT 2
In-text citations for (FASB, ASC) are noted; however, this does not satisfy the identification of appropriate authoritative
guidance. It is unclear what topic, subtopic(s), section(s), and subsection(s)) for each issue is intended to be referenced.
Also, ASC 606-10-55-49 does not represent the most relevant guidance for the gift cards element. Please clearly identify the
specific appropriate authoritative guidance for each issue.
B4. Analysis of Research
Approaching Competence
Approaching CompetenceThe memo includes an incomplete or illogical analysis of the research for the accounting issues
listed in part A, or research for 1 or more of the accounting issues listed in part A is not included in the analysis.
EVALUATOR COMMENTS: ATTEMPT 2
A solid analysis is provided for the 90-day right of return element. The analyses of the research performed on the accounting
issues created by the manufacturer’s coupons, gift cards, and warranty claims are not satisfactorily developed.
B5. Accounting Treatment(s) Recommendation
Approaching Competence
Approaching CompetenceThe memo does not include a logical recommendation of an accounting treatment for 1 or more
of the accounting issues listed in part A.
EVALUATOR COMMENTS: ATTEMPT 2
The response validly notes that breakage should be expected for the gift cards sold by Ramesses II. The discussions
concerning the contract not including breakage and a clause that guarantees the 3% commission are unclear. The discussion
on whether the warranty claims are a guarantee or not lacks a specific accounting treatment recommendation. Additionally,
the discussions on making an estimate to account for the coupons as a liability and the alternative to include the coupons in
the original manufacturer’s price tags lack clarity on how the coupons should be accounted for. Please clarify the accounting
treatment recommendations for the accounting issues created by the gift cards, warranty claims, and manufacturer’s
coupons.

Purchase answer to see full
attachment