Dowell 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?
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Dowell 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?
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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, 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?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…
- Beautiful Company is involved in litigation regarding a faulty product sold in a prior year during 2021. The company has consulted with its attorney and determined that it is possible that they may lose the case. The attorneys estimated that there is a 40% chance of losing. If this is the case, their attorney estimated that the amount of any payment would be P500,000.How much is the Provision to be reported at December 31, 2021?Wildhorse Manufacturing Inc. is a local manufacturing company. Rather than sell its product directly, Wildhorse ships its finished goods inventory to CMR Retailing Ltd., who sells the product for Wildhorse on consignment. During 2020, Wildhorse ships $119,500 in merchandise to CMR. At the end of 2020, CMR has sold 65% of the merchandise for $72,000. CMR notifies Wildhorse of the sales, retains a 20% commission, and remits the cash due to Wildhorse. Prepare all the necessary journal entries on the books of Wildhorse Manufacturing to record the consignment transactions. (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.) No. Account Titles and Explanation Debit Credit 1. (To record shipped merchandise) 2. (To record year end sales entry)…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.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?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?
- 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 amountOn October 2, 2020, Ivanhoe Company sold $5,630 of its elite camping gear (with a cost of $3,320) to Lynch Outfitters. As part of the sales agreement, Ivanhoe includes a provision that if Lynch is dissatisfied with the product, Ivanhoe 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 Ivanhoe and Lynch). Ivanhoe expects total allowances to Lynch to be $760. On October 16, 2020, Ivanhoe 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. Prepare journal entries for Ivanhoe to record (1) the sale on October 2, 2020, (2) the granting of the allowance on October 16, 2020, and, (3) any adjusting required on October 31, 2020 (when Ivanhoe prepares financial statements). Ivanhoe now estimates additional allowances of $260 will be granted to Lynch in the future. (Credit account titles are…GoodBuy sells gift cards redeemable for GoodBuy products either in store or online. During 2024, GoodBuy sold $1,040,000 of gift cards, and $900,000 of the gift cards were redeemed for products. As of December 31, 2024, $33,000 of the remaining gift cards had passed the date at which GoodBuy concludes that the cards will never be redeemed. How much gift card revenue should GoodBuy recognize in 2024?