At the beginning of the 2021. Titanic Corp. sold 50 units of a merchandise for the year for a total sales price of P3,000,000. These merchandise come with a two: year warranty for defects. During the year, the company incurred actual warranty cost at P55,000. Your audit investigation revealed that this transaction was reported in the statement of comprehensive income as Sales at P3,000,000 and warranty expense at P55,000. Assuming that the warranty is considered service-type and that the warranty service is considered a separate performance obligation (which is selling separately at P2,500 per unit) to be performed over two years, what is the correct amount of sales to be reported in the SCI for the period and balance of liability to be reported in the SFP as at the end of 2021? A. 2,880,000 and 120,000 B. 3,000,000 and 60,000 C. 2,880,000 and 60,000 D. 3,000,000 and 29,000

On January 1, 2022, Kingbird, Inc. had Accounts Receivable of $49,900 and Allowance for Doubtful Accounts of $3,500. Kingbird, Inc. prepares financial statements annually. During the year, the following selected transactions occurred: Jan.  5   Sold $3,450 of merchandise to Rian Company, terms n/30. Feb.  2   Accepted a $3,450, 4-month, 8% promissory note from Rian Company for balance due. 12   Sold $11,800 of merchandise to Cato Company and accepted Cato’s $11,800, 2-month, 9% note for the balance due. 26   Sold $5,300 of merchandise to Malcolm Co., terms n/10. Apr.  5   Accepted a $5,300, 3-month, 8% note from Malcolm Co. for balance due. 12   Collected Cato Company note in full. June  2   Collected Rian Company note in full. 15   Sold $2,200 of merchandise to Gerri Inc. and accepted a $2,200, 6-month, 11% note for the amount due.     Journalize the transactions. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is…

From inception of operations, Paramount Company provided for uncollectible accounts receivable under the allowance method using the percentage of sales method. The balance in the allowance for doubtful accounts was P500,000 on January 1, 2020. During the current year, credit sales totaled P20,000,000, interim provisions for doubtful accounts were made at 2% of credit sales, P200,000 of bad debts were written off, and recoveries of accounts previously written off amounted to P50,000. The aging accounts receivable showed the following summary Classification Balance Collectible November to December 5,000,000 95% July to October 2,000,000 90% January to June 1,000,000 75% Prior to January 1,2020 500,000 25% Based on the review of collectibility of the account balances in "prior to January 1, 2020" aging category, additional accounts totaling P100,000 are to be written off on December 31, 2020. Effective with the year ended December 31, 2020, the entity adopted the aging…

From inception of operations, Comprehensive Company provided for uncollectible accounts expense under the allowance method using the percentage of sales method.   No year-end adjustments to the allowance account were made.   The balance in the allowance for doubtful accounts was P1,000,000 on January 1, 2020.   During the current year, credit sales totaled P20,000,000 interim provisions for doubtful accounts were made at 2% of credit sales, bad debts of P200,000 were written off, and recoveries of accounts previously written off amounted to P50,000.   An aging on accounts receivable was made for the first tIme on December 31, 2020.    Aging Balance Uncollectible 0 - 60 6,000,000 10% 61 - 180 2,000,000 20% 181 - 360 1,500,000 30% Over          360   500,000 50%   Based on the review of collectibility of the account balances in the “over 360 days” aging category, additional accounts totaling P100,000 are to be written off on december 31, 2020.   Effective with the year ended December 31,…