On May 15, 2023, Sheridan Ltd. sold conveyor systems to Splish Inc. on account for a selling price of $457,000 (cost $301,620) terms n/30. Sheridan grants the right to return systems that do not sell within two months following delivery. Past experience indicates that the normal return rate is 10%. On July 11, 2023, Splish returned systems to Sheridan and was granted credits of $35,000. By the time Splish returned the systems, Sheridan's account had been paid in full.
On May 15, 2023, Sheridan Ltd. sold conveyor systems to Splish Inc. on account for a selling price of $457,000 (cost $301,620) terms n/30. Sheridan grants the right to return systems that do not sell within two months following delivery. Past experience indicates that the normal return rate is 10%. On July 11, 2023, Splish returned systems to Sheridan and was granted credits of $35,000. By the time Splish returned the systems, Sheridan's account had been paid in full.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 24E: Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January...
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![On May 15, 2023, Sheridan Ltd. sold conveyor systems to Splish Inc. on account for a selling price of $457,000 (cost $301,620) terms
n/30. Sheridan grants the right to return systems that do not sell within two months following delivery. Past experience indicates that
the normal return rate is 10%. On July 11, 2023, Splish returned systems to Sheridan and was granted credits of $35,000. By the time
Splish returned the systems, Sheridan's account had been paid in full.
(a)
Assuming Sheridan follows IFRS, prepare Sheridan's journal entries to record the sale on May 15, 2023, including any expected
returns. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required,
select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
May 15, 2023
May 15, 2023
Account Titles and Explanation
(To record sale on account.)
Debit
|||
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa7b0925a-62a5-4510-9cb9-3fd1f0169fe6%2F865ad856-d1eb-4c27-bf52-756a19542ed8%2Fdbkbc25_processed.png&w=3840&q=75)
Transcribed Image Text:On May 15, 2023, Sheridan Ltd. sold conveyor systems to Splish Inc. on account for a selling price of $457,000 (cost $301,620) terms
n/30. Sheridan grants the right to return systems that do not sell within two months following delivery. Past experience indicates that
the normal return rate is 10%. On July 11, 2023, Splish returned systems to Sheridan and was granted credits of $35,000. By the time
Splish returned the systems, Sheridan's account had been paid in full.
(a)
Assuming Sheridan follows IFRS, prepare Sheridan's journal entries to record the sale on May 15, 2023, including any expected
returns. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required,
select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
May 15, 2023
May 15, 2023
Account Titles and Explanation
(To record sale on account.)
Debit
|||
Credit
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