miture Manufacturer inc. sells 1,000 chairs to a retailer for $400,000 (with a cost of $240,000) in June 2020. Additionally, Furniture M tailer will provide. The retailer will provide the advertising electronically and through local print media. The cost for the advertising c Prepare the entry for June 2020 to record Furniture Manufacturer Inc's sales revenue and cost of sales, assuming cash collected i r Prepare the entry in June 2020 to record Furniture Manufacturer Inc.'s sales revenue and cost of sales now assuming that $500,000 ote: If a journal entry (or a line of a journal entry) isn't required for the transaction, select "N/A'as the account name and leave the D Account Name Dr. Cr. Sales Revenue record the sale of product. record the cost cf sales. Account Name Dr. Cr.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
answer quickly
Accounting for Consideration Payable
Furniture Manufacturer Inc. sells 1,000 chairs to a retailer for $400,000 (with a cost of $240,000) in June 2020. Additionally, Furniture Manufacturer Inc. agrees to pay $4,000 toward an advertising promotion campaign that the
retailer will provide. The retailer will provide the advertising electronically and through local print media. The cost for the advertising campaign was negotiated as part of the revenue contract.
a. Prepare the entry for June 2020 to record Furniture Manufacturer Inc's sales revenue and cost of sales, assuming cash collected is net of the advertising fee.
b. Prepare the entry in June 2020 to record Furniture Manufacturer Inc.'s sales revenue and cost of sales now assuming that $500,000 cash is collected this month. The advertising fee will be paid next month to the customer.
Note: If a journal entry (or a line of a journal entry) isn't required for the transaction, select "N/A"as the account name and leave the Dr. and Cr. answers blank (zero).
a.
Account Name
Dr.
Cr.
Sales Revenue
0 x
To record the sale of product.
0 x
To record the cost of sales.
b.
Account Name
Dr.
Cr.
Sales Revenue
0 x
To record the sale of product.
To record the cost of sales.
Transcribed Image Text:Accounting for Consideration Payable Furniture Manufacturer Inc. sells 1,000 chairs to a retailer for $400,000 (with a cost of $240,000) in June 2020. Additionally, Furniture Manufacturer Inc. agrees to pay $4,000 toward an advertising promotion campaign that the retailer will provide. The retailer will provide the advertising electronically and through local print media. The cost for the advertising campaign was negotiated as part of the revenue contract. a. Prepare the entry for June 2020 to record Furniture Manufacturer Inc's sales revenue and cost of sales, assuming cash collected is net of the advertising fee. b. Prepare the entry in June 2020 to record Furniture Manufacturer Inc.'s sales revenue and cost of sales now assuming that $500,000 cash is collected this month. The advertising fee will be paid next month to the customer. Note: If a journal entry (or a line of a journal entry) isn't required for the transaction, select "N/A"as the account name and leave the Dr. and Cr. answers blank (zero). a. Account Name Dr. Cr. Sales Revenue 0 x To record the sale of product. 0 x To record the cost of sales. b. Account Name Dr. Cr. Sales Revenue 0 x To record the sale of product. To record the cost of sales.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education