Indomitable Company sold 100,000 gallons of heating oil at P30 per gallon. Fifty thousand gallons were delivered on December 15, 2020, and the remaining 50,000 gallons were delivered on January 15, 2021. Payment terms were: 50% due on October 1, 2020, 25% on the first delivery, and the remaining 25% due on the second delivery. What amount of sales revenue should be recognized during 2020?

Q: On January 1, 2021, the Montgomery Company agreed to purchase a building by making six payments. The…

A: Step 1: 1. Compute the amount at which the cost of the building should be recorded as follows:

Q: Oriole Navigation began operations in 2020 and provides a one-year warranty on the products it…

A: Estimated Warranty is not a contingent liability of the business because it is not dependent on some…

Q: On October 1, 2018, Super Soup Corp. began offering customers a Super Soup Spoon in return for 20…

A: Journalizing is one of the basic and important processes of recording financial transactions. In…

Q: On May 3, 2020, Ayayai Company consigned 90 freezers, costing $480 each, to Remmers Company. The…

A: Consignment means where consignor send goods to consignee to be sold by later on the behalf of…

Q: Ivanhoe Company sells goods on credit that cost $309,500 to Michael Company for $415,500 on January…

A: The revenue recognition principle under the accrual basis of accounting dictates that revenues…

Q: On May 3, 2020, Flint Company consigned 80 freezers, costing $450 each, to Remmers Company. The cost…

A: Given information is: Goods consigned 80 freezers costing $450 each

Q: Caramel Company sells parts to Cotton Co during 2023. Caramel offers rebates of 2% on purchases up…

A: Journal Entries:Recording the transactions in the books of accounts is called journal entries. In…

Q: (a) Compute the inventory value of the units unsold in the hands of the consignee. Inventory value $…

A: Consignment sales involve a supplier (consignor) sending goods to a retailer (consignee) who sells…

Q: At December 31, 2019, Park Beauticians had 1,000 gift certificates outstanding, which had been sold…

A: Unearned Revenue: Unearned Revenue is also called deferred revenue. Unearned Revenue means money…

Q: Green Company started business in 2020. It sells printers with a three-year warranty. Green…

A: Warranty  expense  is the total warranty  claim for product  =2%+4%+6% =12%

Q: Unearned Service Revenue

A: As per IFRS 15(Revenue From contracts with customers ), an entity need to allocate identify distinct…

Q: Splish Company sells goods to Blossom Company during 2020. It offers Blossom the following rebates…

A: Past experience shows that the 37,600 units are sold to Blossom in the third quarter, hence a rebate…

Q: The Moustache Company is replacing most of the windows in its Alden factory by purchasing them under…

A: Interest expense for 2019 = face value of notes x rate of interest x period = $37,908,000 x 10% =…

Q: What is the revenue earned from award credits for 2022? *see attached a. P 0 b. P 28,000 c. P…

A: Given, Total Sales for 3 years = P 2,800,000 Actual Warranty Expenditure = P 136,000 Total expected…

Q: Receipts from contracts are credited to unearned service contract revenue.

A: Fajardo Company First Year Contract       :                   200,000 ( 500,000*40% ) Second Year…