Current Attempt in Progress On October 2, 2025, Crane Company sold $6,260 of its elite camping gear (with a cost of $3,900) to Windsor Outfitters. As part of the sales agreement, Crane includes a provision that if Windsor is dissatisfied with the product, Crane will grant an allowance on the sales price or agree to take the product back (although returns are rare, given the long-term relationship between Crane and Windsor). Windsor expects total allowances to Windsor to be $800. On October 16, 2025, Crane grants an allowance of $400 to Windsor because the color for some of the items delivered was a bit different than what appeared in the catalog. Prepare journal entries for Crane to record (1) the sale on October 2, 2025, (2) the granting of the allowance on October 16, 2025, and, (3) any adjusting required on October 31, 2025 (when Crane prepares financial statements). Crane now estimates additional allowances of $240 will be granted to Windsor in the future. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) No Date (1) Account Titles and Explanation Debit
Current Attempt in Progress On October 2, 2025, Crane Company sold $6,260 of its elite camping gear (with a cost of $3,900) to Windsor Outfitters. As part of the sales agreement, Crane includes a provision that if Windsor is dissatisfied with the product, Crane will grant an allowance on the sales price or agree to take the product back (although returns are rare, given the long-term relationship between Crane and Windsor). Windsor expects total allowances to Windsor to be $800. On October 16, 2025, Crane grants an allowance of $400 to Windsor because the color for some of the items delivered was a bit different than what appeared in the catalog. Prepare journal entries for Crane to record (1) the sale on October 2, 2025, (2) the granting of the allowance on October 16, 2025, and, (3) any adjusting required on October 31, 2025 (when Crane prepares financial statements). Crane now estimates additional allowances of $240 will be granted to Windsor in the future. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) No Date (1) Account Titles and Explanation Debit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please and thank you
Transcribed Image Text:View Policies
Current Attempt in Progress
On October 2, 2025, Crane Company sold $6,260 of its elite camping gear (with a cost of $3,900) to Windsor
Outfitters. As part of the sales agreement, Crane includes a provision that if Windsor is dissatisfied with the product,
Crane will grant an allowance on the sales price or agree to take the product back (although returns are rare, given the
long-term relationship between Crane and Windsor). Windsor expects total allowances to Windsor to be $800. On
October 16, 2025, Crane grants an allowance of $400 to Windsor because the color for some of the items delivered
was a bit different than what appeared in the catalog.
Prepare journal entries for Crane to record (1) the sale on October 2, 2025, (2) the granting of the allowance on
October 16, 2025, and, (3) any adjusting required on October 31, 2025 (when Crane prepares financial
statements). Crane now estimates additional allowances of $240 will be granted to Windsor in the future. (Credit
account titles are automatically indented when the amount is entered. Do not indent manually. If
no entry is required, select "No entry" for the account titles and enter O for the amounts. List all
debit entries before credit entries.)
No
Date
(1)
(2)
Account Titles and Explanation
(To record sales on account)
(To record cost of goods sold)
(To record allowance)
(3)
Debit
Indicate the income statement reporting by Crane at October 31, 2025, of the information related to the Windsor
transaction.
CRANE COMPANY
Income Statement (Partial)
Transcribed Image Text:Indicate the income statement reporting by Crane at October 31, 2025, of the information related to the Windsor
transaction.
CRANE COMPANY
Income Statement (Partial)
$
Indicate the balance sheet reporting by Crane at October 31, 2025, of the information related to the Windsor
transaction.
CRANE COMPANY
Balance Sheet (Partial)
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