EXERCISE I5Lincoln Company sells its products in returnable containers.The customers are given a period of 2 years fromthe year of delivery to return the containers. Containers not returned within the prescribed period areconsidered sold at the amount of deposits forfeited. At January 1,2020, the balance of the account RefundableDeposits on Returnable Containers is P 250,000, consisting of the following:For containers delivered to customers in :2018P 100,0002019150,000During 2020, the company received additional deposits of P 200,000 for containers delivered to customersduring 2020 for return of containers amounted to P 267,000,as follows:Deliveries in 2018P 82,000Deliveries in 2019T10,000Deliveries in 202075,000REQUIRED:Compute the balance of Refundable Deposits for Returnable Containers at December 31,2020.

Balance of refundable deposits for returnable containers is equal to the outstanding claims minus…

Answered: Lincoln Company sells its products in…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 15EA: Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise....

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Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
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?
Kikiam Company sells its products in reusable expensive containers. The customer is charged a deposit for each container delivered and receives a refund for the reach container returned within two years after the year of delivery. Kikiam Company accounts for any containers not returned within the time limit as being retired by sale at the deposit amount. Information relating to customer deposits follows: Containers held by customers on December 31, 2020, from deliveries in • 2019- P10,000 • 2020- P90,000 Containers delivered in 2021- P100,000 Containers returned in 2021 from deliveries in • 2019- P8,000 • 2020- P40,000 • 2021- P44,000 What amount should Kikiam report as a liability for deposits on returnable containers on December 31, 2021?
Jo Angel Company sells its products in reusable, expensive 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. Jo Angel accounts for the container not returned within the time limit as being retired by sale at the deposit amount. Information for 2020 is as follows: Containers held by customers at December 31, 2019, from deliveries in: 2018 5,000,000 2019 6,000,000 Containers delivered in 2020 9,000,000 Containers returned in 2020 from deliveries in: 2018 4,000,000 2019 4,500,000 2020 3,500,000 What amount should Jo Angel report as a liability for returnable containers at December 31, 2020? Group of answer choices 7,000,000 8,000,000 0 5,500,000
Choke Company sells products with reusable and expensive 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. Containers unreturned at the beginning of 2020 P50,000 Containers delivered in 2020 500,000 Containers returned in 2020 240,000 Expired containers 30,000 How much is the deposit liability?
Belarmino 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. Belarmino accounts for the containers not returned within the time limit as being sold at the deposit amount. Information for 2019 is as follows: Containers held by customers at December 31, 2018, from deliveries in: 2017 85,000 2018 240,000 325,000 Containers delivered in 2019 430,000 Containers returned in 2019 from deliveries in: 2017 57,500 2018 140,000 2019. 157,000 354,500 How much…
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…
Lincoln Company purchased merchandise from Grandville Corp, on September 30, 2021. Payment was made in the form of a noninterest-bearing note requiring Lincoln to make six annual payments of $5,200 on each September 30, beginning on September 30, 2024 (EV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answer to nearest whole dollar amount.) Required: Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2021, assuming that an interest rate of 11% properly reflects the time value of money in this situation Amount recorded
The notes receivable account of Yuri Corporation for year 2019 is summarized below: Sold goods and received a P25, 000 2-year, noninterest bearing note on March 1, 2019. The effective interest on this date was 12%. Sold goods and received a P20, 000 10-month, 5% interest bearing note from customer on September 30, 2019. The goods with a total price of P33, 000 was sold on January 1, 2019. Receiving a P3,000 cash and P30,000 three-year, 10% interest bearing note to be collected in 3 equal payments to principal every December 31 starting 2019 which includes interest based on outstanding balance. Market rate of interest for this risk level was at 14%. Required: (Kindly provide a solution) 1. Total current portion of notes receivable as of 2019 2. Total noncurrent portion of notes receivable as of 2019 3. Accrued interest receivable as of December 31, 2019 4. Interest income in 2019
On January 1, 2018, The Barrett Company purchased merchandise from a supplier. Payment was a noninterestbearing note requiring five annual payments of $20,000 on each December 31 beginning on December 31, 2018,and a lump-sum payment of $100,000 on December 31, 2022. A 10% interest rate properly reflects the timevalue of money in this situation.Required:Calculate the amount at which Barrett should record the note payable and corresponding merchandise purchasedon January 1, 2018.
FDN Company received a 60-day 10% promissory note as settlement for goods sold on March 1, 2022 for P25,500. How much should be debited to Cash upon collection of the note on maturity date?
AAA Company sells gift certificates that expire one year after their issuance. Information on gift certificates is shown below: Unearned revenue – gift certificates, January 1, 2020 - 600,000Gift certificates sold during 2019 - 1,000,000Prior year gift certificates redeemed in 2020 - 400,000Gift certificates sold and redeemed in 2020 - 700,000 How much is the unearned revenue from gift certificates as of December 31, 2020?

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