Problem 7 [sale with material right] Assume that on July 1, 2020 you paid cash to purchase a television from Best Buy for $500. As part of a promotional effect, Best Buy gives you a coupon that allows you to buy a wall mount for the TV for $20. The wall mount normally sells for $80. The coupon expires after 30 days. Based on historical records, Best Buy estimates that 50% of customers utilize the coupon to buy the wall mount. Customers cannot obtain this special deal on the wall mount by any other means. Assume that Best Buy uses the residual method to estimate the stand-alone selling price of the TV without the discount coupon if such estimation is needed. The television comes with a manufacturer's one-year quality assurance warranty. 1. Prepare the journal entry made by Best Buy to record the sale to you. Enter your answer below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green bo Entry on July 1, 2020: Account Debit Credit 2. Prepare the journal entry made by Best Buy assuming that you use the coupon to purchase the wall 3 mount. D Enter your answer belew C 2. Prepare the journal entry made by Best Buy assuming that you use the coupon to purchase the wall mount. Enter your answer below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box. Entry when coupon is used to purchase wall mount: Account Debit Credit B 3. Prepare the journal entry (if needed) made by Best Buy assuming that you allow the coupon to lapse. 5 Enter your answer below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box. 7 Entry when the coupon lapses unused: Account Debit Credit 51 52 53 54
Problem 7 [sale with material right] Assume that on July 1, 2020 you paid cash to purchase a television from Best Buy for $500. As part of a promotional effect, Best Buy gives you a coupon that allows you to buy a wall mount for the TV for $20. The wall mount normally sells for $80. The coupon expires after 30 days. Based on historical records, Best Buy estimates that 50% of customers utilize the coupon to buy the wall mount. Customers cannot obtain this special deal on the wall mount by any other means. Assume that Best Buy uses the residual method to estimate the stand-alone selling price of the TV without the discount coupon if such estimation is needed. The television comes with a manufacturer's one-year quality assurance warranty. 1. Prepare the journal entry made by Best Buy to record the sale to you. Enter your answer below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green bo Entry on July 1, 2020: Account Debit Credit 2. Prepare the journal entry made by Best Buy assuming that you use the coupon to purchase the wall 3 mount. D Enter your answer belew C 2. Prepare the journal entry made by Best Buy assuming that you use the coupon to purchase the wall mount. Enter your answer below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box. Entry when coupon is used to purchase wall mount: Account Debit Credit B 3. Prepare the journal entry (if needed) made by Best Buy assuming that you allow the coupon to lapse. 5 Enter your answer below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box. 7 Entry when the coupon lapses unused: Account Debit Credit 51 52 53 54
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Problem 7 [sale with material right]
Assume that on July 1, 2020 you paid cash to purchase a television from Best Buy for $500. As part of a
promotional effect, Best Buy gives you a coupon that allows you to buy a wall mount for the TV for $20.
The wall mount normally sells for $80. The coupon expires after 30 days. Based on historical records,
Best Buy estimates that 50% of customers utilize the coupon to buy the wall mount.
Customers cannot obtain this special deal on the wall mount by any other means. Assume that Best Buy
uses the residual method to estimate the stand-alone selling price of the TV without the discount coupon
if such estimation is needed.
The television comes with a manufacturer's one-year quality assurance warranty.
1. Prepare the journal entry made by Best Buy to record the sale to you.
Enter your answer below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green bo
Entry on July 1, 2020:
Account
Debit
Credit
2. Prepare the journal entry made by Best Buy assuming that you use the coupon to purchase the wall
3 mount.
D Enter your answer belew C](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F07090dcb-2c52-46ef-b4eb-27792d2bd0c9%2F912ec494-61c7-4de1-a4b0-6c7df9f4f91e%2Feus519g_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 7 [sale with material right]
Assume that on July 1, 2020 you paid cash to purchase a television from Best Buy for $500. As part of a
promotional effect, Best Buy gives you a coupon that allows you to buy a wall mount for the TV for $20.
The wall mount normally sells for $80. The coupon expires after 30 days. Based on historical records,
Best Buy estimates that 50% of customers utilize the coupon to buy the wall mount.
Customers cannot obtain this special deal on the wall mount by any other means. Assume that Best Buy
uses the residual method to estimate the stand-alone selling price of the TV without the discount coupon
if such estimation is needed.
The television comes with a manufacturer's one-year quality assurance warranty.
1. Prepare the journal entry made by Best Buy to record the sale to you.
Enter your answer below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green bo
Entry on July 1, 2020:
Account
Debit
Credit
2. Prepare the journal entry made by Best Buy assuming that you use the coupon to purchase the wall
3 mount.
D Enter your answer belew C
Transcribed Image Text:2. Prepare the journal entry made by Best Buy assuming that you use the coupon to purchase the wall
mount.
Enter your answer below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box.
Entry when coupon is used to purchase wall mount:
Account
Debit
Credit
B 3. Prepare the journal entry (if needed) made by Best Buy assuming that you allow the coupon to lapse.
5 Enter your answer below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box.
7 Entry when the coupon lapses unused:
Account
Debit
Credit
51
52
53
54
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