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On July 1, 2024, Wildhorse Inc. enters into a contract with Kreighton Limited to supply $23,200 of goods, terms n/30, FOB shipping point. The cost of the goods to Wildhorse was $16,000. Wildhorse has a stated policy that products may be returned within 20 days of the date of sale. Wildhorse's management expects that it will be entitled to 95% of the sale amount and therefore estimated returns based on past experience are 5% of sales. The goods were shipped to Kreighton on July 6. Wildhorse uses the contract-based approach to recognizing revenue. Answer the following questions. Prepare the necessary journal entries at the appropriate date to recognize the sale of the goods by Wildhorse to Kreighton. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry for the account titles and enter O for the amounts List all debit entries before credit entries) Account Titles and Explanation Date Date July 6, 2024 July 6, 2024 July 6, 2024 Account Titles and Explanation (To record sale on account.) (To record cost of goods sold.) Debit Debit Credit Credit

On July 1, 2024, Wildhorse Inc. enters into a contract with Kreighton Limited to supply $23,200 of goods, terms n/30, FOB shipping point. The cost of the goods to Wildhorse was $16,000. Wildhorse has a stated policy that products may be returned within 20 days of the date of sale. Wildhorse's management expects that it will be entitled to 95% of the sale amount and therefore estimated returns based on past experience are 5% of sales. The goods were shipped to Kreighton on July 6. Wildhorse uses the contract-based approach to recognizing revenue. Answer the following questions. Prepare the necessary journal entries at the appropriate date to recognize the sale of the goods by Wildhorse to Kreighton. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry for the account titles and enter O for the amounts List all debit entries before credit entries) Account Titles and Explanation Date Date July 6, 2024 July 6, 2024 July 6, 2024 Account Titles and Explanation (To record sale on account.) (To record cost of goods sold.) Debit Debit Credit Credit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume that Kreighton returns goods with a selling price of $928 and a cost of $630 on July 16. Pare the journal entries for the returned merchandise. (Credit account titles are automatically indented when the amount is entere journal entries in the order presented in the problem. If no entry is required, select "No Entry for the amounts. List all debit entries before credit entries) indent manually Record tles and enter O for the Date Account Titles July 16, 2024 July 16, 2024 (To record the return of merchandise.) (To record cost of goods returned.) Debit Credit
Transcribed Image Text:Assume that Kreighton returns goods with a selling price of $928 and a cost of $630 on July 16. Pare the journal entries for the returned merchandise. (Credit account titles are automatically indented when the amount is entere journal entries in the order presented in the problem. If no entry is required, select "No Entry for the amounts. List all debit entries before credit entries) indent manually Record tles and enter O for the Date Account Titles July 16, 2024 July 16, 2024 (To record the return of merchandise.) (To record cost of goods returned.) Debit Credit
On July 1, 2024, Wildhorse Inc. enters into a contract with Kreighton Limited to supply $23,200 of goods, terms n/30, FOB shipping point. The cost of the goods to Wildhorse was $16,000. Wildhorse has a stated policy that products may be returned within 20 days of the date of sale. Wildhorse's management expects that it will be entitled to 95% of the sale amount and therefore estimated returns based on past experience are 5% of sales. The goods were shipped to Kreighton on July 6. Wildhorse uses the contract-based approach to recognizing revenue. Answer the following questions. Prepare the necessary journal entries at the appropriate date to recognize the sale of the goods by Wildhorse to Kreighton. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts List all debit entries before credit entries) Date Date July 6, 2024 July 6, 2024 July 6, 2024 Account Titles and Explanation Account Titles and Explanation (To record sale on account.) (To record cost of goods sold.) Debit Debit Credit Credit
Transcribed Image Text:On July 1, 2024, Wildhorse Inc. enters into a contract with Kreighton Limited to supply $23,200 of goods, terms n/30, FOB shipping point. The cost of the goods to Wildhorse was $16,000. Wildhorse has a stated policy that products may be returned within 20 days of the date of sale. Wildhorse's management expects that it will be entitled to 95% of the sale amount and therefore estimated returns based on past experience are 5% of sales. The goods were shipped to Kreighton on July 6. Wildhorse uses the contract-based approach to recognizing revenue. Answer the following questions. Prepare the necessary journal entries at the appropriate date to recognize the sale of the goods by Wildhorse to Kreighton. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts List all debit entries before credit entries) Date Date July 6, 2024 July 6, 2024 July 6, 2024 Account Titles and Explanation Account Titles and Explanation (To record sale on account.) (To record cost of goods sold.) Debit Debit Credit Credit
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