Contract: It is a voluntary arrangement that is enforced by the law between two or more parties as a legal binding agreement.
Sales revenue: It is the overall income that is earned during the selling of goods and services after deducting returns. It is also known as Net sales revenue.
Cost of goods sold: It is the direct amount used for the production of goods and services. These costs may include the cost of materials and labor cost used in the production of goods and services.
Consignment: A consignment is the process of transfer of goods to another person or an agent.
Consignee: In the contract, the consignee is responsible for receipt of a shipment of product. Generally the consignee will be the same as the receiver.
Consignor: In the contract, who delivers the consignment to the consignee is the consignor. Responsibility of the products is with the consignor till the time consignee pays the full amount. In most of the cases the seller is the consignor.
(a)
To prepare: To prepare the
Given information: All the related information is provided in the question document.
(b)
To prepare: To prepare the journal entry sales.
Given information: All the related information is provided in the question document.
(c)
To prepare: To prepare the journal entries for sales.
Given information: All the related information is provided in the question document.
(d)
To prepare: To prepare the journal entries.
Given information: All the related information is provided in the question document.
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Chapter 18 Solutions
Intermediate Accounting: IFRS Edition
- What is its DOL? Accounting questionarrow_forwardThe following data were selected from the records of Fluwars Company for the year ended December 31, current year: Balances at January 1, current year: Accounts receivable (various customers) $ 111,500 Allowance for doubtful accounts 11,200 The company sold merchandise for cash and on open account with credit terms 1/10, n/30, without a right of return. The following transactions occurred during the current year: Sold merchandise for cash, $252,000. Sold merchandise to Abbey Corp; invoice amount, $36,000. Sold merchandise to Brown Company; invoice amount, $47,600. Abbey paid the invoice in (b) within the discount period. Sold merchandise to Cavendish Inc.; invoice amount, $50,000. Collected $113,100 cash from customers for credit sales made during the year, all within the discount periods. Brown paid its account in full within the discount period. Sold merchandise to Decca Corporation; invoice amount, $42,400. Cavendish paid its account in full after the…arrow_forwardI want the correct answer with accountingarrow_forward
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