Name Instructor Course Date Subject: Transaction 1: Sale of 1 000 feet of 18 AWG coaxial cable for $3 per foot to CableCo. Transaction 2: Sale of 1 500 feet of fiber-optical cable for $3 per foot to Teleco. Re: Revenue Recognition Analysis Executive Summary Transaction 1 CoAx is selling 1000 feet of 18 American wire gage (AWG) to CableCo. Therefore the company has entered into an agreement that is binding to purchase the gage. Due to CableCo company inability to take the gage into their own warehouse CoAx is in a dilemma on what to do with the item. The only place CoAx can store the gage is in their 10 000-foot spools and in such spool the product is considered finished and ready for shipment. Therefore the company will regard the item as sold to prevent the use of the item. However the auditors of the company can recognize the revenue. It is irrelevant that CoAx owns DeliveryAx Company as a shipping service to third parties. Conclusion CoAx Company in both transactions aimed at recognizing revenue as the transactions with Teleco and CableCo were complete. In transaction one the product was in possession of CoAx but in operation two the product was in possession of a shipping company DeliveryAx. The terms were different in that CableCo ownership was upon completion of all terms but in transaction two the terms required the transfer of the property upon delivery to a shipping company. However both revenues are recognizable as per the current accounting standards. The recommendation for CoAx is to establish a measure that is appropriate for revenue recognition where it measures the progress towards achievement of the full performance of the contract. By doing so the company will show progress towards adopting the new ASC 606 Standard. [...]
I have attached all the instruction. can you do this by Friday March 17.