??? Anderson Company sells inventory costing $24,000 to acustomer for $38,000. Because of significant uncertaintiessurrounding the transaction, the instalment sales method isviewed as proper. In the first year, the company collects$15,200. In the second year, the company collects another$14,500. What amount of profit should the companyrecognize in the second year?

Definition of Installment Sales Method:The installment sales method is an accounting approach used…

Answered: Anderson Company sells inventory…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company has several branch operations that sell merchandise transferred from the home office. This inventory at billed price of 20 percent more than cost. In producing financial statements for the company as a whole, what happens at the end of the year?A. The unrealized gain on any remaining inventory is eliminated for financial reporting purposes.B. The gain remains as reported since the amount would be immaterial.C. Any remaining gain is reported as a contra balance to the Purchase account.D. Any remaining is reported as a contra balance to the Branch account. Answer please
At the end of the Year 2 accounting period, DeYoung Company determined that the market value of its inventory was $79,800. The historical cost of this inventory was $81,400. DeFazio uses the perpetual inventory method. Assuming the amount is immaterial, how will the necessary write-down to reduce the inventory to the lower-of-cost-or-market affect the company's financial statements? Multiple Choice O O Decrease total assets, gross margin, and net income Increase total assets and net income Decrease total assets and gross margin Decrease total assets and net income
3) a) Shahi Foods & Spices Company purchased goods for OMR 25,000 and sold 70% of such goods during the accounting year ended on 31-12-2019. The market value of remaining goods was OMR 5,000. The company valued the closing inventory at OMR 5,000 and not at OMR 7,500. Is there any violation of accounting concept/convention by Shahi Foods & Spices Company? Justify your answer. b) Sky Jewelers Muscat received an order to supply gold ornaments worth OMR 50,000. They supplied ornaments worth OMR 30,000 up to the year ending 31st December 2020 and rest of the ornaments worth OMR 20,000 were supplied in January 2021. Which accounting concept/convention must be followed by Sky Jewelers while recording this transaction? Discuss.
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Marigold Ltd. sold goods to Martinez Corp, for 67400, terms n/15, FOB shipping point. The inventory had cost Marigold $35800. Marigold’s management expected a return rate of 3% based on prior experience. What is the adjusting entry?
Y Wholesale Company began the year with merchandise inventory of $9,000. During the year, Y purchased $97,000 of goods and returned $6,300 due to damage. Y also paid freight charges of $1,200 on inventory purchases. At year-end, Y's ending merchandise inventory balance stood at $17,400. Assume that Y uses the periodic inventory system. Compute Y's cost of goods sold for the year. Less: Plus: Less: Cost of Goods Sold
On May 11, 2023, Wilson Purchasing purchased $30,000 of merchandise from Happy Sales; terms 1/10, n/90, FOB Happy Sales. The cost of the goods to Happy was $25,000. Wilson paid $2,000 to Express Shipping Service for the delivery charges on the merchandise on May 11. On May 12, Wilson returned $5,000 of goods to Happy Sales, which restored them to inventory. The returned goods had cost Happy $4,200. On May 20, Wilson mailed a cheque to Happy for the amount owed on that date. Happy received and recorded the cheque on May 21. Required: a. Present the journal entries that Wilson Purchasing should record for these transactions. Assume that Wilson uses a perpetual inventory system. View transaction list 1 Record the purchase of merchandise on credit; terms 1/10, n/90. 2 Record the payment of shipping charges on purchased merchandise. 3 Record the return of unacceptable merchandise. 4 Record the payment of balance within the discount period. b. Present the journal entries that Happy Sales…
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