USA Revenue Recognition

[ssmoke]

A Bingo Hall recognizes Revenue as follows;
100 cards issued to seller, cards are $2/each
Seller returns 20 cards therefore they recognize 80 (sold) x $2 = $160 Sales Revenue

At the end of the shift the seller will turn in cash for all sales, should the seller be short they will recognize the shortage in a contra account for Revenue - Shortage.

Is this acceptable by US GAAP?

 

[Samir]

I don't know about about GAAP, but this is basically what we use for shifts where clerks or other employees are short.