Cost Recovery Method for Revenue Recognition

This video explains how to use the cost-recovery method to recognize revenue. A comprehensive example is provided to illustrate how the cost-recovery method results in profit being deferred until the cash collected exceeds the cost of the item or inventory that was sold.
-
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
-
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
eepurl.com/dIaa5z
-
SUPPORT EDSPIRA ON PATREON
* / prof_mclaughlin
-
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
edspira.thinki...
-
LISTEN TO THE SCHEME PODCAST
Apple Podcasts: podcasts.apple...
Spotify: open.spotify.c...
Website: www.edspira.co...
-
GET TAX TIPS ON TIKTOK
/ prof_mclaughlin
-
ACCESS INDEX OF VIDEOS
www.edspira.co...
-
CONNECT WITH EDSPIRA
Facebook: / edspira
Instagram: / edspiradotcom
LinkedIn: / edspira
-
CONNECT WITH MICHAEL
Twitter: / prof_mclaughlin
LinkedIn: / prof-michael-mclaughlin
-
ABOUT EDSPIRA AND ITS CREATOR
www.edspira.co...
michaelmclaugh...

[@chinaprise]

Absolutely brilliant video. What took me 30 mins to try to read and understand, was easily explained in your 7 min video.

[@rickjacoby4542]

great videos, your a great teacher and educator. The only thing I would have liked is for your to give the account type of all accounts your using. Example- Deferred Gross Profit is a contra account receivable. I always find it helpful to know what type of account I'm dealing with. Thanks again

[@marialipy]

i love your videos. simplified and easy to understand. thanks for this. more power and keep posting relevant videos. God Bless you.👍👍👏👏

[@Edspira]

Thank you for the kind words. I'm happy to help and look forwarding to uploading a ton of new videos this fall semester!

[@hassanhuneiti9249]

thank you very much for making accounting much easier

[@Edspira]

No problem, I'm glad you found the video useful. Take care and enjoy the holidays!

[@hawaii137]

what kind of accounts are the deferred gross profit...and realized gross profit accounts? liability and contra accounts?

[@andrewthompson3204]

What account gets credited if those deferred profits go unrealized? And what’s the affect on the I/s?

[@nightthemare4742]

Thanks! You are best.

[@waffle2489]

thank you for helping us sir

[@Edspira]

No problem. Thanks for watching!

[@waffle2489]

liked all your vids u deserve a lot

[@nelsonokoko4761]

Quite helpful..

[@Edspira]

Thanks!

[@phamanhkhoatruong9336]

...