Pharoah Company sells goods to Blossom Company during 2023. It offers Blossom the following rebates based on total sales to Blossom. If total sales to Blossom are 8,600 units, it will grant a rebate of 2%. If it sells up to 20,800 units, it will grant a rebate of 4%. It if sells up to 27.600 units, it will grant a rebate of 6%. In the first quarter of the year, Pharoah sells 9,600 units to Blossom, on account, at a sales price of $96,000. Based on past experience, Pharoah has sold over 40,000 units to Blossom, and these sales normally take place in the third quarter of the year. (a) Your answer is partially correct. Prepare the journal entries including any rebates that Pharoah should make to record the sale, on account, of the 9,600 units in the first quarter of the year assuming Pharoah follows IFRS. Ignore any cost of goods sold entry. (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.) Account Titles and Explanation Accounts Receivable Sales Revenue (To record sale on account) Sales Discounts Sales Revenue (To record rebate) Debit 96000 2120 Credit 010 96000 2120
Pharoah Company sells goods to Blossom Company during 2023. It offers Blossom the following rebates based on total sales to Blossom. If total sales to Blossom are 8,600 units, it will grant a rebate of 2%. If it sells up to 20,800 units, it will grant a rebate of 4%. It if sells up to 27.600 units, it will grant a rebate of 6%. In the first quarter of the year, Pharoah sells 9,600 units to Blossom, on account, at a sales price of $96,000. Based on past experience, Pharoah has sold over 40,000 units to Blossom, and these sales normally take place in the third quarter of the year. (a) Your answer is partially correct. Prepare the journal entries including any rebates that Pharoah should make to record the sale, on account, of the 9,600 units in the first quarter of the year assuming Pharoah follows IFRS. Ignore any cost of goods sold entry. (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.) Account Titles and Explanation Accounts Receivable Sales Revenue (To record sale on account) Sales Discounts Sales Revenue (To record rebate) Debit 96000 2120 Credit 010 96000 2120
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ashvin
Transcribed Image Text:Pharoah Company sells goods to Blossom Company during 2023. It offers Blossom the following rebates based on total sales to
Blossom. If total sales to Blossom are 8,600 units, it will grant a rebate of 2%. If it sells up to 20,800 units, it will grant a rebate of 4%. It
if sells up to 27,600 units, it will grant a rebate of 6%. In the first quarter of the year, Pharoah sells 9,600 units to Blossom, on account,
at a sales price of $96,000. Based on past experience, Pharoah has sold over 40,000 units to Blossom, and these sales normally take
place in the third quarter of the year.
(a)
- Your answer is partially correct.
Prepare the journal entries including any rebates that Pharoah should make to record the sale, on account, of the 9,600 units in
the first quarter of the year assuming Pharoah follows IFRS. Ignore any cost of goods sold entry. (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.)
Account Titles and Explanation
Accounts Receivable
Sales Revenue
(To record sale on account)
Sales Discounts
Sales Revenue
(To record rebate)
e Textbook and Media
List of Accounts
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Debit
96000
2120
Credit
96000
100
Attempts: 3 of 5 used
2120
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