Introduction to Basics, Inc. sells products with reusable and expensive containers. The customer is charged a deposit for each container delivered and receives a refund for eadch container returned within two years after the year of delivery. Containers held by customers on January 1, 2021 from deliveries in: 2019 2020 P 75,000 215,000 P290,000 Containers delivered in 2021 P390,000 Containers returned in 2021 from deliveries in: 2019 2020 P 45,000 125,000 143,000 2021 P313,000 Required: 1) Prepare the journal entries for 2021. 2) What is the liability for deposits on December 31, 2021?

Introduction to Basics, Inc. sells products with reusable and expensive containers. The customer is charged a deposit for each container delivered and receives a refund for eadch container returned within two years after the year of delivery. Containers held by customers on January 1, 2021 from deliveries in: 2019 2020 P 75,000 215,000 P290,000 Containers delivered in 2021 P390,000 Containers returned in 2021 from deliveries in: 2019 2020 P 45,000 125,000 143,000 2021 P313,000 Required: 1) Prepare the journal entries for 2021. 2) What is the liability for deposits on December 31, 2021?

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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