PROBLEM NO. 10 The following are two (2) unrelated situations. OMEGA COMPANY sells its products in expensive, reusable containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery. Omega accounts for the containers not returned within the time limit as being sold at the deposit amount. Information for 2017 is as follows: Containers held by customers at December 31, 2016, from deliveries in: Containers delivered in 2017 Containers returned in 2017 from deliveries in: 2015 85,000 240,000 2016 325,000 430,000 2015 57,500 2016 140,000 2017 157,000 354,500 51. How much revenue from container sales should be recognized for 2017? A. P127,500 B. P267,500 C. P27,500 B. P400,500 52. What is the total amount of Omega Company's liability for returnable containers at December 31, 2017? A. P373,000 D. P85,000 C. P267,500 D. P430,000
PROBLEM NO. 10 The following are two (2) unrelated situations. OMEGA COMPANY sells its products in expensive, reusable containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery. Omega accounts for the containers not returned within the time limit as being sold at the deposit amount. Information for 2017 is as follows: Containers held by customers at December 31, 2016, from deliveries in: Containers delivered in 2017 Containers returned in 2017 from deliveries in: 2015 85,000 240,000 2016 325,000 430,000 2015 57,500 2016 140,000 2017 157,000 354,500 51. How much revenue from container sales should be recognized for 2017? A. P127,500 B. P267,500 C. P27,500 B. P400,500 52. What is the total amount of Omega Company's liability for returnable containers at December 31, 2017? A. P373,000 D. P85,000 C. P267,500 D. P430,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Transcribed Image Text:PROBLEM NO. 10
The following are two (2) unrelated situations.
OMEGA COMPANY sells its products in expensive, reusable containers. The customer is charged
a deposit for each container delivered and receives a refund for each container returned within
two years after the year of delivery. Omega accounts for the containers not returned within the
time limit as being sold at the deposit amount. Information for 2017 is as follows:
Containers held by customers at
December 31, 2016,
from deliveries in:
Containers delivered in 2017
Containers returned in 2017
from deliveries in:
2015 85,000
2016
240,000
325,000
430,000
2015
57,500
2016
140,000
2017 157,000 354,500
51. How much revenue from container sales should be recognized for 2017?
A. P127,500
B. P267,500
C. P27,500
B. P400,500
52. What is the total amount of Omega Company's liability for returnable containers at
December 31, 2017?
A. P373,000
D. P85,000
C. P267,500
D. P430,000
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