2 3 4 Selling Price of trailers 900,000 540,000 Cost of goods trailers Road Trip Equipment Inc. grants the right to return trailers that do not sell in two (2) months 18 following delivery to their retail customers. " Past experience indicates that the normal return rate is: 2 5 6 7 On March 15, 2023, Road Trip Equipment Inc. sold trailers to retailer customers on account as follows: T 15% By May 10, 2023, following the collection on account, retailer customers returned trailers to Road Trip Equipment Inc. and they were granted credits for the trailers returned. ted 120,000 Customer credits
2 3 4 Selling Price of trailers 900,000 540,000 Cost of goods trailers Road Trip Equipment Inc. grants the right to return trailers that do not sell in two (2) months 18 following delivery to their retail customers. " Past experience indicates that the normal return rate is: 2 5 6 7 On March 15, 2023, Road Trip Equipment Inc. sold trailers to retailer customers on account as follows: T 15% By May 10, 2023, following the collection on account, retailer customers returned trailers to Road Trip Equipment Inc. and they were granted credits for the trailers returned. ted 120,000 Customer credits
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Don't give answer in image format
![11
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4
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TAU
On March 15, 2023, Road Trip Equipment Inc. sold trailers to retailer customers
on account as follows:
Selling Price of trailers
900,000
540,000
Cost of goods trailers
Road Trip Equipment Inc. grants the right to return trailers that do not sell in two (2) months
4
following delivery to their retail customers.
Past experience indicates that the normal return rate is:
15%
By May 10, 2023, following the collection on account, retailer customers returned
trailers to Road Trip Equipment Inc. and they were granted credits for the trailers returned.
120,000
Customer credits ented
REQUIRED
Prepare Road Trip Equipment Inc.'s journal entries to record the following transactions:
[1] The sale of the trailers on March 15, 2023, including any expected returns.
[2] The actual returns on May 10, 2023.
Road Trip Equipment Inc. follows IFRS standards regarding their revenue recognition.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3bf948c9-4c26-44de-8673-a54eb782e52b%2F43bac2a7-5b20-42c0-a063-bd215604a8e3%2Fnrrwrhw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:11
12
13
4
10
5
9
8
4
5
6
7
TAU
On March 15, 2023, Road Trip Equipment Inc. sold trailers to retailer customers
on account as follows:
Selling Price of trailers
900,000
540,000
Cost of goods trailers
Road Trip Equipment Inc. grants the right to return trailers that do not sell in two (2) months
4
following delivery to their retail customers.
Past experience indicates that the normal return rate is:
15%
By May 10, 2023, following the collection on account, retailer customers returned
trailers to Road Trip Equipment Inc. and they were granted credits for the trailers returned.
120,000
Customer credits ented
REQUIRED
Prepare Road Trip Equipment Inc.'s journal entries to record the following transactions:
[1] The sale of the trailers on March 15, 2023, including any expected returns.
[2] The actual returns on May 10, 2023.
Road Trip Equipment Inc. follows IFRS standards regarding their revenue recognition.
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