1. Ford Motor estimates expenses relating to a quality-assurance warranty on its cars that were sold.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 4MC: A car dealership sells a car to a customer for $35,000. The customer makes a 10% down payment, and...
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Identify transaction(s) with a variable consideration

1. Ford Motor estimates expenses relating to a quality-assurance warranty on its cars that were sold.

2. An attorney is entitled to 40% of the award to his/her client if the litigation is won, and nothing if the litigation is lost.

3. An accounting firm charges every audit client $10,000 plus $150 per hour.

4. As a promotion of it new store, Acme Inc. mailed $25 voucher to every family in a city.  Acme estimates that customers will probably redeem three-fourth of all vouchers.

2, 3 and 4
1 and 4
2 and 4
1, 2 and 3
 
 
 

 

 

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