On July 15, 2017 Matrix Corp sells 20,000 snoe shovels to a distributor for $15 per shovel. The distributor pays the amount on July 15, 2017, and has the right to returnany of the snow shovels for any reason within 180 days for a full refund. Matrix uses the expected value method to estimate that 8% of the snow shovels will be returned and it is probable that no more than 8% of the shovels will be returned. How much sales revenue should Matrix recognize on July 15, 2017 for this sale?
Q: On March 10, 2020, Steele Company sold to Barr Hardware 200 tool sets at a price of $50 each (cost…
A:
Q: Hopewell sells a line of goods under a six-month warranty. Any defect arising during that period is…
A: We have the following information: Hopewell has calculated that if all the goods sold in the last…
Q: Teal Company sells goods to Flint Company during 2020. It offers Flint the following rebates based…
A: As per the IFRS, Revenue should be booked only when it is highly probable that the amount will be…
Q: On August, 2019, HBO consigned to GEO 10 laptops costing P15,000 each, paying freight charge of…
A: Consignment: When items are sent on consignment, the individual or firm who owns them pays for them…
Q: On August 1, 2021, FAITH Inc purchased a new machine on a deferred payment basis. A down payment of…
A: Capitalized cost of Machine: When constructing or acquiring fixed assets, capitalized expenses are…
Q: Indicate the income statement and balance sheet reporting by Pronghorn at October 31, 2020, of the…
A: Sales returns and allowances means value of goods that are being returned by customer or allowance…
Q: ugust, 2019, HBO consigned to GEO 10 laptops costing P15,000 each, paying freight charge of P15,000.…
A: Net Income: Net income is the excess amount of revenue that arises after deducting all the expenses…
Q: Aria Perfume, Inc., sold 3,210 boxes of white musk soap during January of 2021 at the price of $90…
A: Number of performance Obligation In the given case, contract has not mention but it clear the…
Q: During 2015, AD Company signed a non-cancelable contract with BARD Company to purchase 5,000,…
A: Units purchased=5,000 Price=P1,700 Price fallen to=P1,680 Further decrease=P1,540
Q: Bavarian Bar and Grill opened for business in November 2021. During its first two months of…
A: Accounting for Gift Card: - When a company sells a gift card, it is not considered revenue, instead,…
Q: On October 2, 2020, Ivanhoe Company sold $5,630 of its elite camping gear (with a cost of $3,320) to…
A: Sales Agreement: An contract of sale specifies the terms and conditions under which the seller will…
Q: Manual Company sells goods to Nolan Company during 2020. It offers Nolan the following rebates based…
A: Sales revenue = Total sales - Rebate = $110,000 - $110,000*2% = $110,000 - $2,200 = $107,800
Q: On March 1, 2018, Gold Examiner receives $147,000 from a local bank and promises to deliver 100…
A:
Q: On March 10, 2020, Wildhorse Company sold to Barr Hardware 230 tool sets at a price of $53 each…
A: A balance sheet is a financial statement that illustrates the assets, liabilities, and shareholder…
Q: r the first year of purchase. It believes that this promotion will bring in some new buyers. On…
A: Given Price of the Automobiles 25000P Less : Down Payment 1000 Balance Amount 24000 P…
Q: Pirates PLC sells a line of goods under a six-month warranty. Any defect arising during that period…
A: The question is based on the concept of Financial Accounting.
Q: Compute Premium Liability in 2019.
A: Premium Liability is the expected amount of redemptions yet to be for the year 2019 Premium…
Q: On January 1, 2021, Lumberjack Co. needed to purchase a new log jammer; however, due to cash flow…
A: Lumberjack Co. purchased machine on credit on January 1, 2021 for $12,000 and start the payments at…
Q: Kylie Co. is a VAT-registered merchandising company. Kylie buys products from a local supplier for…
A: VAT Payable is the amount of Value added tax that is payable to the government by an individual. VAT…
Q: On July 15, 2017 Matrix Corp sells 20,000 snoe shovels to a distributor for $15 per shovel. The…
A: Sales Revenue The total amount of money earned by an organization from the sale of goods or the…
Q: ABC Kitchen sells dishwashers and garbage disposals to customers. The company buys the dishwashers…
A: The profit from the sale of goods is realized when the goods reach their final delivery destination.…
Q: On March 10, 2017, Steele Company sold to Barr Hardware 200 tool sets at a price of $50 each (cost…
A: (a) Prepare journal entries for Steele to record (1) the sale on March 10, 2017, (2) the return on…
Q: During 2016, Palazzo Company signed a non-cancelable contract with Crown Milling Company to purchase…
A: Non-cancelable contracts are ones that cannot be modified or refused, and the terms and conditions…
Q: n August 2021, Commonlo Corp. commits to selling 100 of its merchandise to M&H Co. for P30,000 (P300…
A: As per IAS 15 Revenue recognition the contract modification will be treated as part of existing…
Q: BM Motors, Inc. employs 40 sales personnel to market its line of luxury automobiles. The average car…
A: An indifference point is a point where both proposals provide the same results.it is also known by…
Q: On January 2, 2017, Criswell Acres purchased from Mifflinburg Farm Supply a new tractor that had a…
A:
Q: Carla Vista Company sells goods to Pearl Company during 2020. It offers Pearl the following rebates…
A: A rebate is a type of purchase discount that is provided in the form of a reduction, return, or…
Q: luna Company sold 700,000 boxes of “puto” mix under a new sales promotional program. Each box…
A: Liability is the obligation for the owner of the entity in which certain amounts are to be paid back…
Q: CircuitTown commenced a gift card program in January 2021 and sold $10,000 of gift cards in January,…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: During 2016, Manfred company guaranteed a supplier’s 500,000 loan from a bank. On Oct. 1, 2017,…
A: Liabilities are the amount of obligations of the business that is to be paid and that arises from…
Q: Attractive Company sold a Ford Escape car costing P620,280 for P960,000 on August 1, 2021. A used…
A: Attractive Company sold a Ford Escape car costing P620,280 for P960,000 on August 1, 2021. A used…
Q: Cigaro recognize for the month of April?
A: Step 1 Revenue is recognized, the following conditions must be met: Persuasive evidence of an…
Q: Indicate how much income Sunland should recognize in January, February, March, and April.
A: As per IFRS 15, principal has to recognise revenue on a gross basis where as agent has to recognise…
Q: Kristin Company sells 300 units of its products for $20 each to Logan Inc. for cash. Kristin allows…
A:
Q: How much is the Unearned Revenue for Unredeemed Premiums at December 31, 2021? 2. How much is the…
A: Sales revenue: Sales revenue is the income earned by the company by selling goods and services.…
Q: How much should be capitalized as cost of the machine? a. 2,300,000 c. 2,323,000 b. 2,320,000 d.…
A: Cost of machine includes cash purchase price of machine and other relevant costs such as non…
Q: On March 10, 2020, Steele Company sold to Barr Hardware 200 tool sets at a price of $50 each (cost…
A: a. Prepare journal entries for Steele Company:
Q: Dowell Fishing Supply, Inc., sold $50,000 of Dowell Rods on December 15, 2021, to Bassadrome.…
A: Bill and hold sales recognize revenue: Customer use to purchase goods and requests the seller to…
Q: How much revenue will Boogie recognize for the month of September?
A: Revenue should be recognized in the period goods are being sold. It does not matter whether cash has…
Q: On June 1, 2020, Mylene Company sells a new car costing P1,620,000 for P2,268,000. A used car is…
A: Gross profit refers to the profit which is earned by the company after deducting all it’s production…
Q: Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third…
A: Answer - Working Note : Calculation of Net Installment Receivable for 2020 : Particulars…
Q: In late November 2014, a car dealership in southern Wisconsin was offering a new 2014 Toyota Corolla…
A: Monthly payments represent those outflows, which have an equal value to maturity value when paid…
Q: On October 2, 2020, Laplante Company sold $6,000 of its elite camping gear (with a cost of $3,600)…
A: a. Prepare journal entries for Laplante to record (1) the sale on October 2, 2020, (2) the granting…
Q: Stellar, Inc. is a distributor of prepaid telephone cards to customers in its convenience stores.…
A: The distributor is the person who purchases the products from the manufacturer and sells the product…
Q: On August, 2019, HBO consigned to GEO 10 laptops costing P15,000 each, paying freight charge of…
A: Cost of Goods Sold is the cost of producing the goods, and it consists of direct materials, direct…
On July 15, 2017 Matrix Corp sells 20,000 snoe shovels to a distributor for $15 per shovel. The distributor pays the amount on July 15, 2017, and has the right to returnany of the snow shovels for any reason within 180 days for a full refund. Matrix uses the expected value method to estimate that 8% of the snow shovels will be returned and it is probable that no more than 8% of the shovels will be returned. How much sales revenue should Matrix recognize on July 15, 2017 for this sale?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Cullumber Bakery began selling gift cards in 2025. Based on industry norms, they expect that 40% of the gift cards will not be redeemed. In 2025, the bakery sold gift cards with a value of $1000. During that period, gift cards with a value of $250 were redeemed. The amount of revenue that Cullumber will recognize in 2025 with regard to the gift cards isCrane Bakery began selling gift cards in 2025. Based on industry norms, they expect that 30% of the gift cards will not be redeemed. In 2025, the bakery sold gift cards with a value of $2000. During that period, gift cards with a value of $500 were redeemed. The amount of revenue that Crane will recognize in 2025 with regard to the gift cards is O $650 O $500 O $2000 O $714In July 10, 2020, Marigold Ltd. sold $1.8 million of compressors to retailers on account. Marigold had paid $918,000 for these compressors. Marigold grants the right to return compressors that do not sell in three months following delivery. Past experience indicates that the normal return rate is 10%. By October 11, 2020, retailers returned compressors to Marigold and were granted a cash refund totalling $175,000. Marigold uses a perpetual inventory system and follows IFRS. Prepare Marigold's journal entries to record the sale on July 10, 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 O for the amounts.) Date Account Titles and Explanation July 10 July 10 Accounts Receivable Purchase Returns and Allowances Sales Revenue (To record sales on account) Cost of Goods Sold (To record cost of goods sold) Debit Credit WIN
- On March 1, 2024, Gold Examiner receives $148,000 from a local bank and promises to deliver 100 units of certified 1-ounce gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink's, a third- party carrier. In addition, Gold Examiner has agreed to provide a replacement shipment at no additional cost if the product is lost in transit. The stand-alone price of a gold bar is $1,410 per unit, and Gold Examiner estimates the stand-alone price of the replacement insurance service to be $90 per unit. Brink's picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurred on April 1. Required: 1. How many performance obligations are in this contract? 2. to 4. Prepare the journal entry Gold Examiner would record on March 1, March 30, and April 1. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 How many performance obligations are in this contract? Number of…* Your answer is incorrect. Crane Company sells 302 units of its products for $20 each to John Inc. for cash. Crane allows John to return any unused product within 30 days and receive a full refund. The cost of each product is $13. To determine the transaction price, Crane decides that the approach that is most predictive of the amount of consideration to which it will be entitled is the probability-weighted amount. Using the probability-weighted amount, Crane estimates that (1) 9 products will be returned and (2) the returned products are expected to be resold at a profit. (a) Indicate the amount of net sales. Net sales $ (b) Indicate the amount of estimated liability for refunds. Liability for refunds $ Cost of goods sold 5869 (c) Indicate the amount of cost of goods sold that Crane should report in its financial statements Lassume that none of the products fave been returned at the financial statement date) 5 eTextbook and Media 171 Q Search 3913 (7On March 1, 2024, Gold Examiner receives $157,000 from a local bank and promises to deliver 106 units of certified 1-ounce gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink’s, a third-party carrier. In addition, Gold Examiner has agreed to provide a replacement shipment at no additional cost if the product is lost in transit. The stand-alone price of a gold bar is $1,410 per unit, and Gold Examiner estimates the stand-alone price of the replacement insurance service to be $90 per unit. Brink’s picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurred on April 1. Required: 1. How many performance obligations are in this contract? 2. to 4. Prepare the journal entry Gold Examiner would record on March 1, March 30, and April 1.
- On March 1, 2024, Gold Examiner receives $139,000 from a local bank and promises to deliver 94 units of certified 1-ounce gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink's, a third- party carrier. In addition, Gold Examiner has agreed to provide a replacement shipment at no additional cost if the product is lost in transit. The stand-alone price of a gold bar is $1,410 per unit, and Gold Examiner estimates the stand-alone price of the replacement insurance service to be $90 per unit. Brink's picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurred on April 1. Required: 1. How many performance obligations are in this contract? 2. to 4. Prepare the journal entry Gold Examiner would record on March 1, March 30, and April 1. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Prepare the journal entry Gold Examiner would record on March 1,…Beautiful Company started a new promotional program in 2021. For every 10 bottle caps returned to Beautiful, customers receive a basketball. The company estimates that only 60% of the bottles reaching the market will be redeemed. The basketball costs P100 and can be sold separately at P150. Additional information is as follows (see image below).1. How much is the Unearned Revenue for Unredeemed Premiums at December 31, 2021? 2. How much is the Total Revenue to be recognized in 2021?In September 2020, Gaertner Corp. commits to selling 150 of its iPhone-compatible docking stations to Better Buy Co. for $15,000 ($100 per product). The stations are delivered to Better Buy over the next 6 months. After 90 stations are delivered, the contract is modified and Gaertner promises to deliver an additional 45 products for an additional $4,275 ($95 per station). All sales are cash on delivery. Instructions a. Prepare the journal entry for Gaertner for the sale of the first 90 stations. The cost of each station is $54. b. Prepare the journal entry for the sale of 10 more stations after the contract modification, assuming that the price for the additional stations reflects the standalone selling price at the time of the contract modification. In addition, the additional stations are distinct from the original products as Gaertner regularly sells the products separately. c. Prepare the journal entry for the sale of 10 more stations (as in (b)), assuming that the pricing…
- On March 1, 2021, Gold Examiner receives $147,000 from a local bank and promises to deliver 100 units of certified 1-oz. gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink's, a third-party carrier. In addition, Gold Examiner has agreed to provide a replacement shipment at no additional cost if the product is lost in transit. The stand- alone price of a gold bar is $1,440 per unit, and Gold Examiner estimates the stand- alone price of the replacement insurance service to be $60 per unit. Brink's picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurred on April 1. Required: 1. How many performance obligations are in this contract? 2. to 4. Prepare the journal entry Gold Examiner would record on March 1, March 30 and April 1. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 to 4 How many performance obligations are in this contract? Number of…Crane Inc. sells prepaid telephone cards to customers in its convenience stores. When Crane sells cards, it then pays the telecommunications company, Blossom, for the value of the cards less a 20% commission. Assume that Crane receives $3,600 of prepaid cards in January 2025. Crane sold 45% of the cards in February, 30% in March, and 25% in April. The total payment by Crane to Blossom over the 3 months is $2,880. Indicate how much income Crane should recognize in January, February, March, and April. (If answer is 0, please enter O. Do not leave any fields blank.) January income February income $ March income $ April income $ $On March 10, 2017, Steele Company sold to Barr Hardware 200 tool sets at a price of $50 each (cost $30 per set) with terms of n/60, f.o.b. shipping point. Steele allows Barr to return any unused tool sets within 60 days of purchase. Steele estimates that (1) 10 sets will be returned, (2) the cost of recovering the products will be immaterial, and (3) the returned tools sets can be resold at a profit. On March 25, 2017, Barr returned six tool sets and received a credit to its account. Assume that instead of selling the tool sets on credit, that Steele sold them for cash.Instructions(a) Prepare journal entries for Steele to record (1) the sale on March 10, 2017, (2) the return on March 25, 2017, and (c) any adjusting entries required on March 31, 2017 (when Steele prepares financial statements). Steele believes the original estimate of returns is correct.(b) Indicate the income statement and balance sheet reporting by Steele at March 31, 2017, of the information related to the Barr sale.