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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E 7-8 Sales returns ⒸLO7-4 Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2024 with a refund liability of $300,000. During 2024, Halifax sold merchandise on account for $11,500,000. Halifax's merchandise costs are 65% of merchandise selling price. Also during the year, customers returned $450,000 in sales for credit, with $250,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024. Sales returns, estimated to be 4% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare entries to (a) record actual returns in 2024 of merchandise that was sold prior to 2024; (b) record actual returns in 2024 of merchandise that was sold during 2024; and (c) adjust the refund liability to its appropriate balance at…
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Opulent Outfits procures inventory for $15,800 with terms 4/20, n/60. After the purchase, the company returns $4,000 worth of the inventory to the supplier and receives an allowance for defective items totaling $180. The entire amount due is settled within the discount period. What is the amount of the discount that will be taken? $380 $297 $304.40 $237
Problem 2 Erika Company operates lovaity program. The entity grants loyalty points for goods purchased. The loyalty points van be used by costumer in exchange for goods of the entity. The points have no expiry date. During 2021, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeerned. The Total Stand-alone selling price of the award credits granted is reliably measured at P1, 00,000 in 2021, the entity sold goods to costumers for a total consideration of P7, 000,000 based on stand-alone selling price. « Th i The award credits redeemed and the total award credits expected to be redeerned each year: Redeemed Expected to be Redeemed 2021 15,000 7,950 2,550 15.000 B0% 2022 85% 85% 90% 2023 2024 1. What amount should be reported as revenue points for 20217 A. 328, 125 B. 875,000 C. 700,000 D. 175,000 2. What amount should be reported as revenue frorn points for 2022? A. 472, 500 В. 4А, 375 C. 415, 625 D. 236, 250 3. What amount shauld be…
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Jan 1, 2021 Beginning Inventory 80 units at $8 Jan 11, 2021 Purchases 65 units at $10 Jan 23, 2021 Purchases 55 units at $12 January 31 Purchases 53 units at $14 All additional data for the current year was taken from the books of ABC Inc. Sales volume for the year are 210. HOW MUCH IN TAXES WILL ABC SAVE IN THE CURRENT YEAR IF THEY CHOOSE TO USE LIFO INSTEAD OF FIFO IF THE TAX RATE IS 30%?
Jan 1, 2021 Beginning Inventory 80 units at $8 Jan 11, 2021 Purchases 65 units at $10 Jan 23, 2021 Purchases 55 units at $12 January 31 Purchases 53 units at $14 All additional data for the current year was taken from the books of ABC Inc. Sales volume for the year are 210. HOW MUCH IN TAXES WILL ABC SAVE IN THE CURRENT YEAR IF THEY CHOOSE TO USE LIFO INSTEAD OF FIFO IF THE TAX RATE IS 30%?
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The following credit sales for Edan enterprises took place during May 2020: May 1: Credit sales to Axel €800 May 2: Credit sales to Bisham €500 May 4: Credit sales to Cloe €400 May 5: Credit sales to N.Roben €700 May 7: Credit sales to S.Wijnelden €300 May 10: Credit sales to T. Hector €800 May 11: Credit sales to P. Sneijder €500 May 17 Credit sales to N.Roben €600 May 23: Credit sales to Cloe €1,000 May 30: Credit sales to Axel €900 Required: (a) Record the above transactions in a sales day book (b) Record the above transactions in the following ledger accounts: (i) Sales Ledger (ii) Transfer the total to the sales account in the General ledger (c ) You have recently been hired as a book-keeper of an SME (Small and medium size) enterprise. Using a case study company in an industry of your own choice: Reflect how the case study company you have selected for purposes of this question the process of developing and maintaining books of original entry particulary with regard to…
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