ABC has entered into a non-cancellable purchase contract which the company to purchase 5,000 sacks of copra from seller at P650 per sack middle of 20x1. By the end of 20x1, the price of copra per sack increases to P670 and by the end of the first quarter of 20x2, it rolls back to 630 a sack when ABC made the actual purchase triggered from the continuing decline since 20x2 commenced. At the time of the actual purchase, how much shall the inventory be recorded at?
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ABC has entered into a non-cancellable purchase contract which the company to purchase 5,000 sacks of copra from seller at P650 per sack middle of 20x1. By the end of 20x1, the price of copra per sack increases to P670 and by the end of the first quarter of 20x2, it rolls back to 630 a sack when ABC made the actual purchase triggered from the continuing decline since 20x2 commenced. At the time of the actual purchase, how much shall the inventory be recorded at?
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- NEED IN 10 MINUTES ABC has entered into a non-cancellable purchase contract which the company to purchase 5,000 sacks of copra from seller at P650 per sack middle of 20x1. By the end of 20x1, the price of copra per sack increases to P670 and by the end of the first quarter of 20x2, it rolls back to 630 a sack when ABC made the actual purchase triggered from the continuing decline since 20x2 commenced. At initial recognition, determine the amount that will be shown in the statement of financial performance related to this transaction? (sample answer: 1,000 gain or 1000 lossWhat is the transaction price for the following scenario: Scenario A: Tula Inc. sells $20,000 of inventory for $45,000 during the year. Tula estimates returns to be 4% of sales. Scenario B: Universe enters into a contract with a new customer for $12,000. As part of this agreement, Universe agrees to pay $4,000 to the customer to compensate the customer for up-front processing costs. A: $43,200 B: $8,000 A: $43,200 B: $12,000 A: $45,000 B: $8,000 A: $45,000 B: $12,000 None of the aboveWestinghouse Company, a producer of washing machines, sells various customers. It has a contract to deliver 10 fully automatic washing machines to Soft and Wash Company for a total price of P400,000. The contract contains a clause for free repairs and maintenance services for a period of two years from date of purchase. Soft & Wash paid 50% of the price and half after 3 months. 1. How much sales revenue vill be recognized by Westinghouse on this sale? P400,000 b. P100,000 а. C. P200,000 d. No revenue
- RG Construction has entered a contract to supply 500 identical items on sale or return basis to a customer for OMR 400 each. Each item costs company OMR 200 to make. The term of sales provides three months to customer from the date of sale to return the items and get a full refund. The reliable estimation shows that around 5% of such sold items are usually returned. What is the amount of refund liability to be recognised in the statement of financial position? O a. OMR 10,000. O b. OMR 100,000. OC. OMR 200,000. O d. OMR 6,000.BLITZKRIEG Co. purchases goods for P250,000 under a special credit period of 1 year. The seller normally sells the goods for P220,000 with a credit period of one month or with a P5,000 discount for cash basis (i.e., outright payment in cash). The initial measurement of the payable is Select the correct response: 220,000 200,000 215,000 250,000PROBLEM: On August, 2019, HBO consigned to GEO 10 laptops costing $15,000 each, paying freight charge of $15,000. At the end of the month, GEO reported sales of 6 handbags at $30,000 each and incurred expenses of $12,500 and remitted the net proceeds due to HBO after deducting a 20% commission on the sales price. REQUIREMENT: How much net income did HBO realize in August on the consignment? A. 37,500 income. B. 32,500 income C. 33,500 loss D. 32,500 loss What is the total cost of inventory of the unsold handbags A. 60,000 B. 66,000 C. 71,000 D. 75,000 THANK YOU SO MUCH IN ADVANCE FOR THE HELP :)
- On May 1, 20x6, Chrome Computer Inc., enters into a contract to sell 5,000 units of keyboard to one of its clients, Website Inc., at a fixed price of P95,000, to be settled by a cash payment on May 1. Delivery is scheduled for June 1, 20x6. As part of the contract, the seller offers a 25% discountcoupon to Website for any purchases in the next six months. The seller will continue to offer a 5% discount on all sales during the same time period, which will be available to all customers. Based on experience, Chrome Computer estimates a 50% probability that Website will redeem the 25%discount voucher, and that the coupon will be applied to P20,000 of purchases. The stand-alone selling price for the Comfort Office Keyboard is P19.60 per unit. Assume the facts and circumstances as above, except that Chrome gives a 5% discount option to Website instead of 25%. In this case, what journal entry would Chrome record on May 1, 20x6? a. DR Cash 95,000 CR Deferred revenue – keyboards…Equate Inc. sells products with a cost of $25,000 during the year to customer for $55,000. It is Equate’s policy to accept returns up to 60 days after the date of purchase. Equate estimates that there is a 60% probability that returns will be 3% of sales and a 40% probability that returns will be 2.5% of sales. What is the transaction price under a) expected value method b) most likely amount method? Choices: A: $53,460 B: $53,350 A: $53,350 B: $53,460 A: $53,460 B: $54,450 A: $54,450 B: $53,460 A: $53,350 B: $53,350SorCo. Inc. has just entered into a sale agreement with a customer. The contract is for $600,000. However, the payments will be made as follows: 1 August 20X1 on date of delivery $400,000; 1 August 20X2 $100,000 and 1 August 20X3 $100,000. SorCo has estimated that the interest rate required for this customer is 8%. SorCo follows IFRS. Required: Prepare the journal entry required to record the sale on 1 August 20X1 and the receipt of cash on 1 August 20X2 and 20X3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations and round your final answers to the nearest whole dollar.)
- On January 1, 20x1, ABC signed a 3-year, non-cancellable purchase contract which allows ABC to purchase up to 12,000 units of Buko annually from XYZ at P15 per unit and guarantees a minimum purchase of 3,000 units. At year-end, it was found out that the goods become unique in the market. ABC had 4,000 units of this inventory at December 31, 20x1, and believe these can be sold for P25 per unit. How much is the gain on purchase commitment to be recognized on December 31, 20x1?Commando Corp. agrees to sell 100 of its products to M&H Co. for P30,000 in August 2021. (P300 per product). The goods will be delivered to M&H over the following six months. The contract is updated after 60 merchandises are supplied, and Common offers to provide 80 more things for an extra P21,600 (P270 per station). Commonlo provided an extra 90 goods at the end of the year. All sales are made in cash upon delivery. Consider that the added term is a potential change to the original contract. That however much income will be recognised under the contract in 2021?Crane Company buys a delivery van with a list price of $55000. The dealer grants a 12% reduction in list price and an additional 1% cash discount on the net price if payment is made in 30 days. Sales taxes amount to $750 and the company paid an extra $650 to have a special device installed. What should be the recorded cost of the van? O $49316. O $48666. O $47916. O $49302.