Chipolo sells a coin-sized tracking tag that attaches to keys, wallets, and other personal items. Chipolo began January with an inventory of 200 tags purchased from its supplier in November last year at a cost of $12 per tag, plus 100 tags purchased in December last year at a cost of $15 per tag. Chipolo sells the tags at a price of $30 per tag, on account with terms n/30, FOB destination. Chipolo uses a perpetual inventory system to account for the following transactions.   Jan.   8   Chipolo gave 250 tags to a courier company (FedEx) to deliver to customers. Jan.   9   FedEx confirmed that all 250 tags were delivered today to customers. Jan.   11   Chipolo ordered 350 tags from its supplier. The supplier was out of stock but promised to send them to Chipolo as soon as possible. Chipolo agreed to a cost of $21 per tag, n/30. Jan.   17   Chipolo received cash payment from customers for 125 of the tags delivered 8 days earlier. Jan.   21   The 350 tags ordered on January 11 were shipped to and received by Chipolo today.  Jan.   23   Chipolo gave 375 tags to FedEx, which were delivered “same day” to customers. Jan.   31   Chipolo counted its inventory and determined 20 tags were on hand. Chipolo made a “book-to-physical adjustment” to account for the missing 5 tags. LIFO method- journal entries.

Rotomola Inc. sells 50 tablet devices for € 200 each (total: € 10,000). Customers can return undamaged devices within 30 days for a full cash refund. The cost of each device is € 150. Based on its experience, Rotomola estimates that 3 tablets will be returned (“most likely approach”). What journal entries should Rotomola record on transfer of the products?

Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or Access. Zisa deducts a 4.5% service charge for sales on its credit card. Access deducts a 3.5% service charge for sales on its card. Mayfair completes the following transactions in June.  June   4   Sold $500 of merchandise on credit (that had cost $250) to Natara Morris.     5   Sold $6,800 of merchandise (that had cost $3,400) to customers who used their Zisa cards.     6   Sold $5,616 of merchandise (that had cost $2,808) to customers who used their Access cards.     8   Sold $4,890 of merchandise (that had cost $2,445) to customers who used their Access cards.     13   Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $395 balance in McKee’s account stemmed from a credit sale in October of last year.     18   Received Morris’s check in full payment for the purchase of June 4.  Required:Prepare journal…

Crazy Computer Store sells a back-to-school bundle that consists of a laptop computer, printer, and tablet to a customer for $2,400. Crazy Computer also sells the products on a stand-alone basis for the following amounts: the laptop for $1,800, the printer for $350, and the tablet for $500. The customer receives a $250 discount for buying the three products as a bundle. Crazy Computer normally sells the laptop and printer as a package for a price of $1,900. The tablet is normally not discounted. Required: 1. How should the transaction price be allocated among the products? 2. Prepare the journal entry when Crazy sells a back-to-school bundle for cash.