Question 5 ESTIMATED TIME 10 minutes In 2021, Kohler Company sold 3,170 metal connectors on account to Ace Hardware Incorporated for $200 each on September 15. Each metal connector costs Kohler Company $150 to make. Ace Hardware has 60 days to return the unused goods. Kohler believes that Ace Hardware will ultimately return 75 of the connectors. On September 29, Ace Hardware returns 50 connectors. Kohler Company has a September 30 fiscal year end. At year end, Kohler believes 75 connectors is a good estimate of the total that will be returned. The cost of recovering these products is immaterial. Kohler expects to be able to resell these goods for a profit. "nstructions repare the following journal entries on the books of Kohler Company: Entries to record the initial sales on September 15. Entries to record the return of goods September 29. Entries to record the year-end adjustment based on estimated returns on September 30.

Question 5 ESTIMATED TIME 10 minutes In 2021, Kohler Company sold 3,170 metal connectors on account to Ace Hardware Incorporated for $200 each on September 15. Each metal connector costs Kohler Company $150 to make. Ace Hardware has 60 days to return the unused goods. Kohler believes that Ace Hardware will ultimately return 75 of the connectors. On September 29, Ace Hardware returns 50 connectors. Kohler Company has a September 30 fiscal year end. At year end, Kohler believes 75 connectors is a good estimate of the total that will be returned. The cost of recovering these products is immaterial. Kohler expects to be able to resell these goods for a profit. "nstructions repare the following journal entries on the books of Kohler Company: Entries to record the initial sales on September 15. Entries to record the return of goods September 29. Entries to record the year-end adjustment based on estimated returns on September 30.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 16P: Premium Obligation Yummy Cereal Company is offering one toy shovel set for 15 box tops of its...

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Edmund Supplies Company sold 3,170 metal connectors on account to Door Incorporated for $200 each on September 15. Each metal connector costs Edmund $150 to make. Door has 60 days to return the unused goods. Edmund believes that Door will ultimately return 75 of the connectors. On September 29, Door returns 50 connectors. Edmund has a September 30 fiscal year end. At year end, Edmund believes 75 connectors is a good estimate of the total that will be returned. The cost of recovering these products is immaterial. Edmund expects to be able to resell these goods for a profit. Instructions Prepare the following journal entries on the books of Edmund Company: Entries to record the initial sales on September 15. Entries to record the return of goods September 29. Entries to record the year-end adjustment based on estimated returns on September 30.
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Problem 2: JIN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and a remittance of P25. Distribution cost is P10 per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2020 2021 Facial soap sales, P50 per unit Towel purchases, P90 per unit Number of box tops returned 2,500,000 2,875,000 337,500 360,000 22,500 38,550 Requirements: How much net cash did the entity receive (give) with regards to the premium transactions for the year given below? (if net cash outflow, put a negative (-) sign before the numerical figure. A. December 31, 2020 B. December 31, 2021 7.
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