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Olson Metrics Ltd. has been the dominant firm in its field. The company's most popular product has been the Model T, which carries a retail price of $320. The Model T costs $220 per unit to produce. Recently, the company introduced a new version, Model A, priced at $350. When the Model A was released, Olson reduced the retail price of the remaining 1,000 units of Model T to $270. Despite the price reduction, the demand for the Model T dropped sharply. Therefore, Olson decided to sell 600 of the remaining units on consignment through FloorMart Inc. as a private label product at $190 per unit. FloorMart will collect a commission of 20% per unit. Olsen will lower the price of the remaining 400 units in inventory to $250. Required: Prepare any journal entry(ies) that are necessary to record the effects of the above information. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the writedown of inventory. Note: Enter debits before credits. Journal entry worksheet < 1 Record the writedown of inventory. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit View general journal Record entry Clear entry >

Olson Metrics Ltd. has been the dominant firm in its field. The company's most popular product has been the Model T, which carries a retail price of $320. The Model T costs $220 per unit to produce. Recently, the company introduced a new version, Model A, priced at $350. When the Model A was released, Olson reduced the retail price of the remaining 1,000 units of Model T to $270. Despite the price reduction, the demand for the Model T dropped sharply. Therefore, Olson decided to sell 600 of the remaining units on consignment through FloorMart Inc. as a private label product at $190 per unit. FloorMart will collect a commission of 20% per unit. Olsen will lower the price of the remaining 400 units in inventory to $250. Required: Prepare any journal entry(ies) that are necessary to record the effects of the above information. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the writedown of inventory. Note: Enter debits before credits. Journal entry worksheet < 1 Record the writedown of inventory. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit View general journal Record entry Clear entry >

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter12: Activity-based Management
Section: Chapter Questions
Problem 6E: Harvey Company produces two models of blenders: the Super Model (priced at 400) and the Special...
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Olson Metrics Ltd. has been the dominant firm in its field. The company's most popular product has been the Model T, which carries a retail price of $320. The Model T costs $220 per unit to produce. Recently, the company introduced a new version, Model A, priced at $350. When the Model A was released, Olson reduced the retail price of the remaining 1,000 units of Model T to $270. Despite the price reduction, the demand for the Model T dropped sharply. Therefore, Olson decided to sell 600 of the remaining units on consignment through FloorMart Inc. as a private label product at $190 per unit. FloorMart will collect a commission of 20% per unit. Olsen will lower the price of the remaining 400 units in inventory to $250. Required: Prepare any journal entry(ies) that are necessary to record the effects of the above information. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the writedown of inventory. Note: Enter debits before credits.
Transcribed Image Text:Olson Metrics Ltd. has been the dominant firm in its field. The company's most popular product has been the Model T, which carries a retail price of $320. The Model T costs $220 per unit to produce. Recently, the company introduced a new version, Model A, priced at $350. When the Model A was released, Olson reduced the retail price of the remaining 1,000 units of Model T to $270. Despite the price reduction, the demand for the Model T dropped sharply. Therefore, Olson decided to sell 600 of the remaining units on consignment through FloorMart Inc. as a private label product at $190 per unit. FloorMart will collect a commission of 20% per unit. Olsen will lower the price of the remaining 400 units in inventory to $250. Required: Prepare any journal entry(ies) that are necessary to record the effects of the above information. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the writedown of inventory. Note: Enter debits before credits.
Journal entry worksheet < 1 Record the writedown of inventory. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit View general journal Record entry Clear entry >
Transcribed Image Text:Journal entry worksheet < 1 Record the writedown of inventory. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit View general journal Record entry Clear entry >
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