SoccerHawk Merchandise Inc. enters into a 6-month contract to sell soccer balls to City Soccer. The contract contains the following price scale: Sales Volume Price per Soccer Ball First 300 soccer balls sold $22 Next 200 soccer balls sold 19 Next 250 soccer balls sold 17 Additional soccer balls sold 15 On the date the contract is signed, SoccerHawk estimates based on past experience that there is a 20% chance it will sell 450 soccer balls, a 45% chance it will sell 600 soccer balls, and a 35% chance it will sell 800 soccer balls. The company sells the following soccer balls during the 6-month contract: Number of Soccer Balls Month 1 155 Month 2 60 Month 3 125 Month 4 75 Month 5 85 Month 6 60 Total sales 560 balls Required: 1. 2. 3. Prepare the journal entries for SoccerHawk assuming that City Soccer pays the amount due at the end of each month based on the sales to date. ***** The transaction price is $19.97 balls to be sold is 640 (.2450+.45600+.35800) total estimated considerations should be $12,780 (30022+20019+14017) I mostly just need Month 6 of the journal entry for sales revenue and unearned revenue. The answer that I got was wrong from subtracting total estimated considersations from the sum of the first 5 months of sales revenues. merely multiplying 60*19.97 also did not yield the correct sales revenue. Help? Thoughts? Thanks!

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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SoccerHawk Merchandise Inc. enters into a 6-month contract to sell soccer balls to City Soccer. The contract contains the following price scale:

Sales Volume	Price per Soccer Ball
First 300 soccer balls sold	$22
Next 200 soccer balls sold	19
Next 250 soccer balls sold	17
Additional soccer balls sold	15

On the date the contract is signed, SoccerHawk estimates based on past experience that there is a 20% chance it will sell 450 soccer balls, a 45% chance it will sell 600 soccer balls, and a 35% chance it will sell 800 soccer balls.

The company sells the following soccer balls during the 6-month contract:

	Number of Soccer Balls
Month 1	155
Month 2	60
Month 3	125
Month 4	75
Month 5	85
Month 6	60
Total sales	560	balls

Required:

1.
2.
3.	Prepare the journal entries for SoccerHawk assuming that City Soccer pays the amount due at the end of each month based on the sales to date.

*****

The transaction price is $19.97

balls to be sold is 640
(.2*450+.45*600+.35*800)

total estimated considerations should be $12,780
(300*22+200*19+140*17)

I mostly just need Month 6 of the journal entry for sales revenue and unearned revenue.

The answer that I got was wrong from subtracting total estimated considersations from the sum of the first 5 months of sales revenues.
merely multiplying 60*19.97 also did not yield the correct sales revenue. Help? Thoughts? Thanks!

DATE
ACCOUNT TITLE
POST. REF.
DEBIT
CREDIT
Jan. 31 Cash
3,410.00
Sales Revenue
3,095.35
2
Unearned Revenue
314.65
3
Feb. 28 Cash
1,320.00
4
Sales Revenue
1,198.20
5
Unearned Revenue
121.80
6
Mar. 31 Cash
2,630.00
7
Sales Revenue
2,496.25
9
Unearned Revenue
133.75
Apr. 30 Cash
1,425.00
10
Unearned Revenue
72.75
11
Sales Revenue
1,497.75
12
May 31 Cash
1,615.00
13
Unearned Revenue
82.45
14
Sales Revenue
1,697.45
15
Jun. 30 Cash
1,020.00
16
17
Unearned Revenue
1,775.00
18
Sales Revenue
2,795.00
00

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