Prepare journal entry to record the expected sales return and cost of goods sold? Pinpong curtains sells with an unconditional sales return if its customers are not satisfied. The sales returns extends 60 days. On February 10, 2021, a customer purchases 4,000 of products (cost 2,000). Assuming that based on prior experience, estimated returns are 20%.
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- Carla Vista Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns extends 60 days. On February 10, 2021, a customer purchases on account $3500 of products (cost $1750). Assuming that based on prior experience, estimated returns are 20%. The journal entry to record the expected sales return includes a debit to Cash and a credit to Sales Revenue of $3500. debit to Sales Returns and Allowance of $700 and a credit to Allowance for Sales Returns and Allowances of $700. credit to Estimated Inventory Returns of $350. debit to Cost of Goods Sold and credit to Inventory for $1750.Ivanhoe Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns extends 60 days. On February 10, 2021, a customer purchases $3000 of products (cost $1500). Assuming that based on prior experience, estimated returns are 10%. The journal entry to record the expected sales return and cost of goods sold includes a O debit to Cash and a credit to Sales Revenue of $3000. O debit to Cost of Goods Sold and credit to Inventory for $1500. O debit to Sales Returns and Allowance of $300 and a credit to Allowance for Sales Returns and Allowances of $150. O credit to Estimated Inventory Returns of $150.Blossom Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns period extends 60 days. On February 10, 2021, a customer purchases $2700 of products (cost $1350). Assuming that based on prior experience, estimated returns are 10%. The journal entry to record the actual return of $120 of merchandise includes a debit to Returned Inventory for $60. debit to Estimated Inventory Returns for $60. credit to Allowance for Sales Returns for $120. credit to Returned Inventory for $60.
- Botanic Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns extends 60 days. On February 10, 2018, a customer purchases $4,000 of products (cost $2,000). Assuming that based on prior experience, estimated returns are 20%. The journal entry to record the expected sales return and cost of goods sold includes A. a debit to Allowance for Sales Returns of $800 and a credit to Cost of Goods sold of $400. B. debit to Cash and a credit to Sales Revenue of $4,000 C.credit to Estimated Inventory Returns of S400 D.debt to Cost of Goods Sold and credit to Inventory for $2,000Botanic Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns extend 60 days. On February 10, 2018, a customer purchases $4,000 of products (cost $2,000). Assuming that based on prior experience, estimated returns are 20%. The journal entry to record the expected sales return and cost of goods sold includes a: a. debit to cash and a credit to sales revenue of $4,000 b. debit to sales revenue and allowances of $800 and a credit to cost of goods sold of $400 c. debit to cost of goods sold and credit to inventory of $2,000 d. credit to estimated inventory returns of $400Sandhill Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns period extends 60 days. On February 10, 2021, a customer purchases $3600 of products (cost $1800). Assuming that based on prior experience, estimated returns are 10%. The journal entry to record the actual return of $210 of merchandise includes a a. credit to Allowance for Sales Returns for $210. B. debit to Returned Inventory for $105. C. debit to Estimated Inventory Returns for $105. D. credit to Returned Inventory for $105.
- Boost inc sells vitamin supplements to customers with an unconditional sales return if they are not satisfied. The sales return extends 90 days. On May 12, 2023, High Country Integrated health purchases $4,000 of products with a cost of $2,000. Based on the company's prior experience, estimated returns are 20%. The journal entry to record the expected sales return and cost of goods sold includes aBotanic Choice sell natural supplements to customers with an unconditional right of return if they are not satisfied. The right of returns extends 60 days. On February 10, 2020, a customer purchases P30,000 of products (cost P15,000). Assuming that based on prior experience, estimated returns are 20%. The journal entry to record the sale and cost of goods sold includes aDetermining Transaction Price and Refund Liability In January 2020, a retailer sells 200 paper shredders to customers for $100 each. The terms of the sales include a right for the customer to return a shredder within 180 days of the sale date. Based on historical trends, the retailer uses the expected value method and estimates a 40% probability that 16 paper shredders will be returned, a 45% probability that 18 paper shredders will be returned, and a 15% probability that 24 paper shredders will be returned. The retailer also concludes it is highly probable that there will not be a significant reversal of revenue recognized based on this return estimate. Thus, the agreement is a valid contract. Assume no actual returns in January 2020. Determine (1) the transaction price for the sale of shredders for January 2020, and (2) the refund liability balance on January 31, 2020. Round expected returns to the nearest whole unit in your calculations. 1. Transaction price $Answer 2. Refund…
- Background It is the 1st April 2021. Jang is the Management Accountant for the business Chinese Lantern Imports. Based on the previous month sales (March 2021) Jang sets the following targets for April 2021. April 2021 targets Targeted Lantern sales = 2,300 units Targeted Lantern unit price = $230 (per lantern) Jang calculates the cost of the Lanterns he will need to purchase in during the month as 50% of the expected sales revenue. However, at the 1st April 2021, Jang already currently has $12,400 of Lanterns stock already in his shop. Jang does not intend to buy an extra Lanterns for May 2021. Question Referring to above information, what is the cost of the Lanterns that Jang needs to purchase in, for the month of April? Select one: a. Cost of Lanterns to purchase in = $237,900 O b. Cost of Lanterns to purchase in = $0 O c. Cost of Lanterns to purchase in = $252,100 O d. Cost of Lanterns to purchase in = $264,500A home gods retailer offers a sales incentive program where customers receive credit towards future purchases based on the dollar amount of their purchases today. For every $10 spent, a customer receives a $1 credit to use in the next 30 days. Based upon historical trends, the firm estimates that 35% of the credits will be redeemed. In the next month, consistent with the firm’s estimate, 35% of the credits were redeemed. The entry recorded to account for the redemption of these credits (excluding the effect of the costs of sales entry): A.) Increases Liabilities, Increases Stockholders’ Equity B.) Increases Liabilities, Reduces Stockholders’ Equity C.) Reduces Liabilities, Reduces Stockholders’ Equity D.) Reduces Liabilities, Increases Stockholders’ Equity C.) No entry neededFrancona inc sold bobblehead dolls with a cost of $267,000 to retailers on account and recorded sales revenue of $445,000 on February 29, 2020. Francona Inc. allows retailers to return bobbleheads that do not sell in 8 months after sale. Past experience shows that the normal return rate is 20%. By Sept. 1, 2020 retailers returned bobbleheads to Francona and were granted credit of $66,000. On June 18, Plesac Corp. sent $55,000 of merchandise on consignment to Clevinger Co; Plesac paid cash for the $3,000 shipping freight costs. Clevinger paid $1,200 for local advertising, which is reimbursable from Plesac. By Dec. 31, 75% of the merchandise had been sold for $80,000. Clevinger notified Plesac, retained commission of 10%, and remitted the cash due to Plesac on Dec. 31. Prepare Plesac's necessary journal entries for June 18 and Dec. 31. Prepare Francona's necessary journal entries for February 29, Sept. 1, and Sept. 30, assuming Francona prepares financial statements on Sept. 30…