HW Chapter 18 S22 Q3. Use this information for the next two questions. Mobco Inc. allows customers of its 'burner phones' to return a maximum of 15% of the delivered units within 31 days of delivery. Based on experience, Mobco expects 8% of the phones to be returned. On 12/16/2019, one of its customers accepted shipment of 1,000 phones at a total contract price of $50,000 (cost $35,000). The customer remitted cash of $50,000 on delivery. On 1/15/2020 (the last day of the return period), the customer returned 15% of the phones in their original packaging.
HW Chapter 18 S22 Q3. Use this information for the next two questions. Mobco Inc. allows customers of its 'burner phones' to return a maximum of 15% of the delivered units within 31 days of delivery. Based on experience, Mobco expects 8% of the phones to be returned. On 12/16/2019, one of its customers accepted shipment of 1,000 phones at a total contract price of $50,000 (cost $35,000). The customer remitted cash of $50,000 on delivery. On 1/15/2020 (the last day of the return period), the customer returned 15% of the phones in their original packaging.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:HW Chapter 18 S22
Q3. Use this information for the next two questions. Mobco Inc. allows customers of its 'burner phones'
to return a maximum of 15% of the delivered units within 31 days of delivery. Based on experience,
Mobco expects 8% of the phones to be returned. On 12/16/2019, one of its customers accepted
shipment of 1,000 phones at a total contract price of $50,000 (cost $35,000). The customer remitted
cash of $50,000 on delivery. On 1/15/2020 (the last day of the return period), the customer returned
15% of the phones in their original packaging.
(a) Make all journal entry(ies) by Mobco for delivery of the phones and receipt of the cash of $50,000.
Record Sales net of expected returns and assume a perpetual inventory system. Show calculations below
each entry.
(b) Make the entry(ies) by Mobco upon receipt of the phones returned by the customer. Show calculations
below each entry.
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