Sharp Inc manufactures high quality sunglasses that carry the endorsements of several sports personalities. In an effort to achieve sales targets for the fourth quarter of the year, Sharp Inc pressured its independent distributors to make unusually large orders of the sunglasses. Low-priced imitations of these sunglasses hit the market soon thereafter, causing the distributors to accumulate large
inventories. The distributors shipped these sunglasses back to Sharp Inc Sharp Incstored the returned sunglasses in a remote warehouse out of the view of its auditors and did not record them as returned goods. The actions
a. are in accordance with U.S. GAAP.
b. are in accordance with IFRS.
c. violate ethical principles.
d. are in accordance with U.S. GAAP, but not IFRS.
e. are in accordance with IFRS, but not U.S. GAAP.
C
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Digital Corporation The following data concern Digital Corporation for 2012. Credit sales during the year $2,400,000 Accounts receivable--December 31, 2012 410,000 Allowance for bad debts--December 31, 2012 55,000 Bad debt expense for the year 35,000 Refer to the information provided for Digital Corporation. What amount will Digital show on its year-end balance sheet for the net realizable value
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a. True b. False Indicate whether the statement is true or false
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Annual demand 5000 Daily production 1000 Lot size 700 Annual holding cost per unit $25