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Recording Customer Deposits During the year, Neighbor Co-Op Inc. sells 600 beverages in glass bottles and receives a $1.00 deposit for each returnable bottle sold. As of December 31, a total of 480 glass bottles were returned and deposits on 72 bottles were forfeited because it is the company's policy that a deposit must be claimed within 30 days. The remaining 48 bottles are still with customers within the 30-day claim period. Required a. Record the collection of deposits during the year. b. Record the return of glass bottles during the year. c. Record the forfeiture of deposits during the year assuming that the cost of each bottle is $0.80. Note: Round your answers to the nearest whole dollar. a. Cash Account Name Liability-Returnable Deposits b. Liability-Returnable Deposits Cash c. Liability-Returnable Deposits Sales Revenue To record forfeiture of deposits Cost of Goods Sold Inventory To adjust inventory related to forfeitures Dr. Cr 01 0X оооооо 0* 07 01 0x 07 0 0X

Recording Customer Deposits During the year, Neighbor Co-Op Inc. sells 600 beverages in glass bottles and receives a $1.00 deposit for each returnable bottle sold. As of December 31, a total of 480 glass bottles were returned and deposits on 72 bottles were forfeited because it is the company's policy that a deposit must be claimed within 30 days. The remaining 48 bottles are still with customers within the 30-day claim period. Required a. Record the collection of deposits during the year. b. Record the return of glass bottles during the year. c. Record the forfeiture of deposits during the year assuming that the cost of each bottle is $0.80. Note: Round your answers to the nearest whole dollar. a. Cash Account Name Liability-Returnable Deposits b. Liability-Returnable Deposits Cash c. Liability-Returnable Deposits Sales Revenue To record forfeiture of deposits Cost of Goods Sold Inventory To adjust inventory related to forfeitures Dr. Cr 01 0X оооооо 0* 07 01 0x 07 0 0X

FINANCIAL ACCOUNTING
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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Recording Customer Deposits During the year, Neighbor Co-Op Inc. sells 600 beverages in glass bottles and receives a $1.00 deposit for each returnable bottle sold. As of December 31, a total of 480 glass bottles were returned and deposits on 72 bottles were forfeited because it is the company's policy that a deposit must be claimed within 30 days. The remaining 48 bottles are still with customers within the 30-day claim period. Required a. Record the collection of deposits during the year. b. Record the return of glass bottles during the year. c. Record the forfeiture of deposits during the year assuming that the cost of each bottle is $0.80. Note: Round your answers to the nearest whole dollar. a. Cash Account Name Liability-Returnable Deposits b. Liability-Returnable Deposits Cash c. Liability-Returnable Deposits Sales Revenue To record forfeiture of deposits Cost of Goods Sold Inventory To adjust inventory related to forfeitures Dr. Cr 01 0X оооооо 0* 07 01 0x 07 0 0X
Transcribed Image Text:Recording Customer Deposits During the year, Neighbor Co-Op Inc. sells 600 beverages in glass bottles and receives a $1.00 deposit for each returnable bottle sold. As of December 31, a total of 480 glass bottles were returned and deposits on 72 bottles were forfeited because it is the company's policy that a deposit must be claimed within 30 days. The remaining 48 bottles are still with customers within the 30-day claim period. Required a. Record the collection of deposits during the year. b. Record the return of glass bottles during the year. c. Record the forfeiture of deposits during the year assuming that the cost of each bottle is $0.80. Note: Round your answers to the nearest whole dollar. a. Cash Account Name Liability-Returnable Deposits b. Liability-Returnable Deposits Cash c. Liability-Returnable Deposits Sales Revenue To record forfeiture of deposits Cost of Goods Sold Inventory To adjust inventory related to forfeitures Dr. Cr 01 0X оооооо 0* 07 01 0x 07 0 0X
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