On January 1, 20x1, ABC signed a 3-year, non-cancellable purchase contract which allows ABC to purchase up to 12,000 units of Buko annually from XYZ at P15 per unit and guarantees a minimum purchase of 3,000 units. At year-end, it was found out that the goods become unique in the market. ABC had 4,000 units of this inventory at December 31, 20x1, and believe these can be sold for P25 per unit. How much is the gain on purchase commitment to be recognized on December 31, 20x1?

On May 1, 20x6, Chrome Computer Inc., enters into a contract to sell 5,000 units of keyboard to one of its clients, Website Inc., at a fixed price of P95,000, to be settled by a cash payment on May 1. Delivery is scheduled for June 1, 20x6. As part of the contract, the seller offers a 25% discountcoupon to Website for any purchases in the next six months. The seller will continue to offer a 5% discount on all sales during the same time period, which will be available to all customers. Based on experience, Chrome Computer estimates a 50% probability that Website will redeem the 25%discount voucher, and that the coupon will be applied to P20,000 of purchases. The stand-alone selling price for the Comfort Office Keyboard is P19.60 per unit.   Assume the facts and circumstances as above, except that Chrome gives a 5% discount option to Website instead of 25%. In this case, what journal entry would Chrome record on May 1, 20x6?   a. DR Cash 95,000         CR Deferred revenue – keyboards…

Dinoland Manufacturing shipped consignment inventory of $200,000 to Storing Company on December 1, 2024. Storing agrees to sell the inventory for a 10% sales commission, while Dinoland maintains title and control over pricing. By the end of the year, $60,000 of the inventory has been sold by Storing to customers for $90,000. How much of this inventory, if any, would Dinoland include in ending inventory in its December 31, 2024, balance sheet?

On 1 July 2022, Entity A entered into Contract X with a customer, Entity B, to sell Product A for $450 per unit. If Entity B purchases more than 800 units of Product A in a 12-month period, Contract X specifies that the price will be reduced to $390 per unit. Entity B agreed to settle all outstanding amounts of Contract X in July 2023 after both Entities agreed on the total units of sales on 30 June 2023. For the quarter that ended 30 September 2022, Entity A sold 216 units of Product A to Entity B. At that date, Entity A concluded that Entity B's purchases would not exceed the 800 units threshold required for the volume discount. In October 2022, Entity B acquired another production unit which increased the demand for Product A from Entity A. On 30 November 2022, Entity B ordered an additional 581 units of Product A from Entity A. In light of this, Entity A concluded that the customer's purchases are now highly likely to exceed the 800 units threshold in the 12 months to 30 June 2023.…