Dowell Fishing Supply, Inc., sold $50,000 of Dowell Rods on December 15, 2018, to Bassadrome. Because ofa shipping backlog, Dowell held the inventory in Dowell’s warehouse until January 12, 2019 (having assuredBassadrome that it would deliver sooner if necessary). How much revenue should Dowell recognize in 2018 forthe sale to Bassadrome?
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Dowell Fishing Supply, Inc., sold $50,000 of Dowell Rods on December 15, 2018, to Bassadrome. Because of
a shipping backlog, Dowell held the inventory in Dowell’s warehouse until January 12, 2019 (having assured
Bassadrome that it would deliver sooner if necessary). How much revenue should Dowell recognize in 2018 for
the sale to Bassadrome?
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- Dowell Fishing Supply, Inc., sold $47,000 of Dowell Rods on December 15, 2018, to Bassadrome. Because of a shipping backlog, Dowell held the inventory in Dowell's warehouse until January 12, 2019 (having assured Bassadrome that it would deliver sooner necessary). How much revenue should Dowell recognize in 2018 for the sale to Bassadrome? RevenueDowell Fishing Supply, Inc., sold $50,000 of Dowell Rods on December 15, 2021, to Bassadrome. Because of a shipping backlog, Dowell held the inventory in Dowell’s warehouse until January 12, 2022 (having assured Bassadrome that it would deliver sooner if necessary). How much revenue should Dowell recognize in 2021 for the sale to Bassadrome?Sandhill Corp. sells idle machinery to Hollis Company on July 1, 2020, for $33,000. Sandhill agrees to repurchase this equipment from Hollis on June 30, 2021, for a price of $34,320 (an imputed interest rate of 4%). Prepare any other necessary journal entries for Sandhill in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Interest Expense enter a debit amount enter a credit amount Liability to Hollis Company enter a debit amount enter a credit amount
- On January 2, 2020, Adani Inc. sells goods to Geo Company in exchange for a zero-interest-bearing note with face value of $11,000, with payment due in 12 months. The fair value of the goods at the date of sale is $10,000 (cost $6,000). Prepare the journal entry to record this transaction on January 2, 2020. How much total revenue should be recognized in 2020?Pacers Company sells its products in expensive reusable containers. The customer is charged a deposit for each container delivered and received a refund for each container returned within two years after the year of delivery. Pacers Company accounts for the containers not returned within the time limit as being sold at the deposit amount. Information for 2023 is as follows: Containers held by customers at December 31, 2023 from deliveries in: 2021 – P310, 000; 2022 – P500, 000; 2023 – P850,000 Deposits distributed for containers returned from deliveries in 2021 – P280,000; 2022 – P390, 000; 2023 - P590, 000 How much is the ending balance of deposits on December 31, 2023? 2. Pistons company sells portable DVD players for P28,000 each and offers to each customer a 3-year service contract for an additional P3,000. During 2023, the company sold 800 DVD players and 500 service contracts for cash. Expenses related to the service contracts for 2023 amounted to…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 2020 is as follows: A. Containers held by customers at December 31, 2019 from deliveries in: 2018, P85,000; and 2019, P240,000. B. Containers delivered in 2020: P430,000. C. Containers returned in 2020 from deliveries in: 2018, P57,500; 2019, P140,000; and 2020, P157,000. 1. What is the total amount of Omega Company’s liability for returnable containers at December 31, 2020? 2. How much revenue from container sales should be recognized for 2020?
- Gatsby, Inc. owed $500,000 on account for inventory purchased on November 1, 2020. The company's fiscal year ends on December 31. Gatsby was unable to pay the amount owed by February 1, 2021 due date because of financial difficulties experienced in early 2021. On February 1, 2021, it signed a $500,000, 10% interest- bearing note. This note was repaid with interest on September 1, 2021. How much interest should Gasby recognize on September 1, 2021 (enter your answer in whole dollars, no comma or dollar sign)?Belarmino 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. Belarmino accounts for the containers not returned within the time limit as being sold at the deposit amount. Information for 2019 is as follows: Containers held by customers at December 31, 2018, from deliveries in: 2017 85,000 2018 240,000 325,000 Containers delivered in 2019 430,000 Containers returned in 2019 from deliveries in: 2017 57,500 2018 140,000 2019. 157,000 354,500 How much…ABC company supplies parts to a major manufacturer for the production of Item I. The carrying amount of the inventory of parts at the end of the fiscal year 2020 is €2,000,000, which was considerably higher compared to the level of inventory of Item I in previous periods. During January 2021 the manufacturer terminated the production of Item I and started the production of Item II. The parts produced by ABC are not interchangeable between Item I and Item II. Moreover, Item I cannot be sold to another manufacturer. Required: Discuss whether ABC should write-down its inventory for the financial statements of 2020.
- On October 2, 2020, Laplante Company sold $6,000 of its elite camping gear (with a cost of $3,600) to Lynch Outfitters. As part of the sales agreement, Laplante includes a provision that if Lynch is dissatisfied with the product, Laplante will grant an allowance on the sales price or agree to take the product back (although returns are rare, given the long-term relationship between Laplante and Lynch). Lynch expects total allowances to Lynch to be $800. On October 16, 2020, Laplante grants an allowance of $400 to Lynch because the color for some of the items delivered was a bit different than what appeared in the catalog. Instructions a. Prepare journal entries for Laplante to record (1) the sale on October 2, 2020, (2) the granting of the allowance on October 16, 2020, and, (c) any adjusting required on October 31, 2020 (when Laplante prepares financial statements). Laplante now estimates additional allowances of $250 will be granted to Lynch in the future. b. Indicate the…On October 2, 2020, Pronghorn Company sold $5,510 of its elite camping gear (with a cost of $3,470) to Lynch Outfitters. As part of the sales agreement, Pronghorn includes a provision that if Lynch is dissatisfied with the product, Pronghorn will grant an allowance on the sales price or agree to take the product back (although returns are rare, given the long-term relationship between Pronghorn and Lynch). Pronghorn expects total allowances to Lynch to be $770. On October 16, 2020, Pronghorn grants an allowance of $390 to Lynch because the color for some of the items delivered was a bit different than what appeared in the catalog.Maximus Company sold its inventory for P300,000 to Maxwell on January 2,2021 and received a one year Note bearing an interest rate or 12% for the full amount. On December 31,2021, Maxim determined based on Maxwell’s recent financial crisis, there’s a delay and change in the pattern of collection. The delay and change in the pattern show’s that P150,000 will be due on December 31, 2022 and 100,000 will be due on December 31,2023. What amount of impairment loss should Maxwell Company recognized on December 31,2021? none P86,000 P122,352 P136,701