On July 10, 2023, Pharoah Ltd. sold GPS systems to retailers on account for a selling price of $920,000 (cost $736,000). Pharoah grants the right to return systems that do not sell in three months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2023, following the collection on account, retailers returned systems to Pharoah and were granted credits of $81,000. The company follows ASPE. (a) Prepare Pharoah's journal entries to record the sale on July 10, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. 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.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

as show in the pic

On July 10, 2023, Pharoah Ltd. sold GPS systems to retailers on account for a selling price of $920,000 (cost $736,000). Pharoah
grants the right to return systems that do not sell in three months following delivery. Past experience indicates that the normal return
rate is 15%. By October 11, 2023, following the collection on account, retailers returned systems to Pharoah and were granted credits
of $81,000. The company follows ASPE.
(a)
Prepare Pharoah's journal entries to record the sale on July 10, 2023. (Credit account titles are automatically indented when the
amount is entered. Do not indent manually. 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
July 10, 2023
July 10, 2023
July 10, 2023
Account Titles and Explanation
(To record sale on account)
(To accrue for sales returns)
(To record cost of goods sold)
Debit
||||||||
Credit
Transcribed Image Text:On July 10, 2023, Pharoah Ltd. sold GPS systems to retailers on account for a selling price of $920,000 (cost $736,000). Pharoah grants the right to return systems that do not sell in three months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2023, following the collection on account, retailers returned systems to Pharoah and were granted credits of $81,000. The company follows ASPE. (a) Prepare Pharoah's journal entries to record the sale on July 10, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. 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 July 10, 2023 July 10, 2023 July 10, 2023 Account Titles and Explanation (To record sale on account) (To accrue for sales returns) (To record cost of goods sold) Debit |||||||| Credit
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Future Value
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education