EXERCISE I5Lincoln Company sells its products in returnable containers.The customers are given a period of 2 years fromthe year of delivery to return the containers. Containers not returned within the prescribed period areconsidered sold at the amount of deposits forfeited. At January 1,2020, the balance of the account RefundableDeposits on Returnable Containers is P 250,000, consisting of the following:For containers delivered to customers in :2018P 100,0002019150,000During 2020, the company received additional deposits of P 200,000 for containers delivered to customersduring 2020 for return of containers amounted to P 267,000,as follows:Deliveries in 2018P 82,000Deliveries in 2019T10,000Deliveries in 202075,000REQUIRED:Compute the balance of Refundable Deposits for Returnable Containers at December 31,2020.

Balance of refundable deposits for returnable containers is equal to the outstanding claims minus…

Answered: Lincoln Company sells its products in…

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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