Patty Corp., a public company, delivers 3,200 units to a customer on 1 April for $80/unit. Patty Corp. has a return policy where theyallow any customer to return any unused product within 45 days and receive a full refund. The cost of each product is $64. Based onhistorical experience Patty estimates that customer will return 2% of the units sold. Patty expects to be able to resell any returnedgoods.Assume that 50 products are returned on 2 May. No additional units are returned by 15 May (the end of the return period).Required:Prepare the journal entries related to the sale of products. (If no entry is required for a transaction/event, select "No journal entryrequired" in the first account field.)View transaction listJournal entry worksheet<123456Prepare the journal entry required on 1 April to record the sale:Note: Enter debits before credits.Date1 AprilGeneral JournalDebitCredit

The objective of this question is to prepare the journal entries related to the sale of products by…

Answered: Patty Corp., a public company, delivers…

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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ABC Company, a grocery retailer, operates a customer loyalty program. The entity grants program members loyalty points when they spend a specified amount on groceries. Program members can redeem the points for further groceries. The points have no expiry date. During 2019, the sales amounted to P7,000,000 and the entity have granted 10,000 points. Management expects that only 80% of the points will be redeemed. The cost of each loyalty point is P100. As of December 31, 2019, 4,800 points have already been redeemed. In 2020, the management revised its expectations to 90% of the points will be redeemed. As of December 31, 2020, the entity redeemed 2,400 points. What amount should be reported as revenue earned from loyalty points in 2020?
Sanju
Over the winter months, Pharoah Co. pre-sells fertilizing and weed control lawn services to be performed from May through September, inclusive. If payment is made in full by April 1, a 5% discount is allowed. In March, 275 customers took advantage of the discount and purchased the summer lawn service package for $760 each. In June, 225 customers purchased the package for $800, and in July, 84 purchased it for the same price. For customers who pay after May 1, service starts in the month the customer makes the payment. How much revenue should be recognized by the Pharoah Co. in each of the months of March, April, May, June, July, August, and September? (Round answers to 0 decimal places, e.g. 5,275. Do not leave any answer field blank. Enter O for amounts.) March $ April $ May $ June $ July August September $
The AAA Branch of SSS Company provided the following information related to its operations for the last quarter of 2020: The store sold 15,000 units at P78.00 each, after having purchased the units from various suppliers for P45.15. AAA Branch's salespeople are paid a 5% commission based on gross sales pesos. AAA sales manager oversees the placement of local advertising contracts, which totaled P154,000 for the year. Local property taxes amounted to P18,600. The sales manager's P25,000 monthly salary is set by AAA's store manager. In contrast, the store manager's P50,000 monthly salary is determined by SSS Company's vice president. AAA incurred last quarter an P16,800 of other noncontrollable costs along with P10,000 of income tax expense. ! Nontraceable (common) company overhead totaled P58,000 during the period. sss Company's corporate headquarter is located in New York and the company uses responsibility accounting to evaluate performance. Required: Prepare a segmented income…
Boost inc sells vitamin supplements to customers with an unconditional sales return if they are not satisfied. The sales return extends 90 days. On May 12, 2023, High Country Integrated health purchases $4,000 of products with a cost of $2,000. Based on the company's prior experience, estimated returns are 20%. The journal entry to record the expected sales return and cost of goods sold includes a
Sew & More sells sewing machines and sewing supplies. The company recently ran a sales promotion on sewing machines that allowed customers to purchase a new sewing machine using store credit. The terms of the contract stated that customers would make 12 monthly payments that included a 6% annual interest rate. On the date of each sale, Sew & More should record. No revenue until the contract is paid in full. Sales revenue equal to the sales price of the sewing machine, interest revenue equal to the total amount of interest for the contract, and a receivable for the total of the sales price plus the interest. revenue equal to the sales price of the sewing machine plus the total interest to be collected and a receivable for the same amount. revenue equal to the sales price of the sewing machine and a receivable for the same amount.
Oriole Company sells 455 units for $290 each to Sheffield Inc. for cash. Oriole allows Sheffield to return any unused product within 30 days and receive a full refund. The cost of each product is $174. To determine the transaction price, Oriole decides that the approach that is most predictive of the amount of consideration to which it will be entitled is the most likely amount. Using the most likely amount, Oriole estimates that ten (10) units will be returned, the costs of recovering the units will be immaterial, and the returned units are expected to be resold at a profit. What amount of refund liability should Oriole record at the time of sale? $1740 O $2900 $1160 O $0
Sleepwell LLC has entered into a contract to supply 50,000 units of sleeping mattes to customer on sale or return basis at OMR 60 each. The cost of making each sleeping mattress is 32 OMR. The term of sales provides three months to customer for the date of sale to return the items and get a full refund. The experience indicates that such customer tends to return back some items and it can be reliably estimated to be around 8% of such sold items are usually returned. find right of return assets. OMR 3,000,000 OMR 240,000 None of them OMR 128,000 Solve PC issues 1 important messag 3 total messages 03:43 EN
Flint Taco Palace sells 280 gift cards at $50 per gift card and 140 of the gift cards are redeemed by year-end. Flint estimates that it wi have 10% breakage on its gift cards. Prepare the entry for the gift card redemption and the expected breakage for the gift cards in the current year. (Ignore Cost of Goods Sold.) (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries. Round intermediate calculations to 4 decimal places, eg. 0.2456 and final answers to 0 decimal places, e.g. 5,125.) Account Titles and Explanation Cash Unearned Gift Card Revenue Subscriptions Revenue. Debit 14000 Credit 7000 7000
Lakeside Components wishes to purchase parts in one month f although sales for June are estimated to total 11,000 parts. Total Parts are purchased at a wholesale price of $15. The supplier ha percent of the purchase price in the month when the parts are 15,000 parts in May. Required: a. Estimate purchases (in units) for June and July. b. Estimate the cash required to make purchases in June and Ju Complete this question by entering your answers in the ta Required A Required B Estimate purchases (in units) for June and July. Merchandise to be purchased in units June July 15,000
Computers and More offers discounts to its customers and allows the customer to return the product if not satisfied. Computers and More had sales of $850,000 and offers the customer a payment term of 3/12 n/30. The company received $15,000 in returned goods. The cost of goods sold for the period after returns was $320,000. Calculate net profit and gross profit.
Adiwele Ltd has a financial year end of 31 March. The entity manufactures Compact Discs for resale. The manufacturing cost per compact disc is R2 per unit. Finished units of the compact disc are sold at R2.5 per unit. On 31 March 2021, Adiwele Ltd had 100 500 units of compact discs in stock. To sell this products Adiwele Ltd will incur the following costs: Sales commission of 20 cents per unit, Additional designing costs of 25 cents per unit, Advertising and packaging costs of 23 cents per unit, Salaries for administrative staff of R6 000 per month. Adiwele Ltd measures inventory at lower of cost and net realisable value as per IAS 2, Inventories according to IFRS at year end. What is the value of the closing inventory on 31 March 2021 as per IAS 2? 1.251 250 2. 201 000 3. 208 035 4. 136 035 5. 244 215

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