You are the Senior Accountant for the Patty Corporation, which has several divisions. They each keep their own accounting books and have chosen the appropriate method of revenue recognition based on their operations.Pat’s Electronics DivisionPat’s Electronics Division sells computers through agents in various cities. Agents send orders and down payments to our company. The division then ships the goods F.O.B. shipping point directly to the customers. Revenue is recognized at the point of sale.Additional Financial Data:Orders for fiscal year 2012 …………………………………………$3,000,000Down Payments collected in 2012 …………………………………$300,000Billed and shipped in 2012 …………………………………………$2,400,000Freight billed in 2012 ……………………………………………………..$70,000Commissions paid to Agents (after ship to customer) ………………10%Warranty Returns as % of Sales ………………………………………………1%View Solution:
You are the Senior Accountant for the Patty Corporation which



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