Would the costs related to the clothing vending

Would the costs related to the clothing vending machines that Uniqlo has installed in airports and shopping malls be expensed or capitalized? Original blog posting (September 19, 2017) Copyright © 2017 by Dr. Wendy Tietz, CPA, CMA This work is licensed under a Creative Commons Attribution-Non. Commercial 3. 0 Unported License.

Uniqlo, a Japanese clothing company • Installing clothing vending machines in U. S. airports and shopping malls • Will dispense thermal jackets, parkas, and other clothing items

Question 1 Would Uniqlo capitalize or expense the cost of the clothing vending machines?

Question 2 Would Uniqlo capitalize or expense the installation cost of the clothing vending machines?

Question 3 When would sales revenue for one parka in the vending machines be recognized?

Question 4 When would the cost of one parka in the vending machine be moved from inventory to cost of goods sold?

Question Recap 1. Would Uniqlo capitalize or expense the cost of the clothing vending machines? 2. Would Uniqlo capitalize or expense the installation cost of the clothing vending machines? 3. When would sales revenue for one parka in the vending machines be recognized? 4. When would the cost of one parka in the vending machine be moved from inventory to cost of goods sold?

For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http: //accountingintheheadlines. com/ Questions or comments? Contact Dr. Wendy Tietz at wtietz@kent. edu Copyright © 2017 by Dr. Wendy Tietz, CPA, CMA This work is licensed under a Creative Commons Attribution-Non. Commercial 3. 0 Unported License.