Use the information in BE7-10 for Wood. Assume that the receivables are sold with recourse. Prepare the journal entry for Wood to record the sale, assuming that the recourse liability has a fair value of $7,500.
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Use the information in BE7-10 for Wood. Assume that the receivables are sold with recourse. Prepare the
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- Which of the following situations may give rise to unearned revenue? Select one: a. Providing trade credit to customers. b. Selling inventory. c. Providing manufacturer warranties. d. Selling magazine subscriptions.The expense for warranty costs is recorded in the period ________. A. when cash is paid to repair or replace the product B. when the product is sold C. when the product is repaired or replaced D. when cash is collected from the sale of the productBlossom Company includes 1 coupon in each box of soap powder that it packs, and 5 coupons are redeemable for a premium (a kitchen utensil). In 2020, Blossom Company purchased 8,000 premiums at 50 cents each for cash and sold 58,500 boxes of soap powder at $3.50 per box for cash; 21,250 coupons were presented for redemption in 2020. It is estimated that 60% of the coupons will eventually be presented for redemption. Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2020. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation (To record the premium inventory) Debit Credit
- Let's assume the merchandiser (buyer) pays after the discount period expires, how will the vendor (seller) journalize the Jeff. Fvpayment? Add the appropriate amount to the appropriate accounts provided below. Use the invoice provided.The credit terms of a sale are normally indicated on a(n): a.check. b.invoice. c.bill of lading. d.purchase order.Access the FASB’s Accounting Standards Codification at the FASB website (www.fasb.org) and select Basic View for free access. Required: Determine the specific nine-digit Codification citation (XXX-XX-XX-XX) for accounting for each of the following items: What are the five key steps to applying the revenue recognition principle? What are indicators that control has passed from the seller to the buyer, such that it is appropriate to recognize revenue at a point in time? Under what circumstances can sellers recognize revenue over time?
- Received interest revenue of RO. 7525. In the Interest revenue ledgerUse the following information for the next three questlons: Entity A, a manufacturing entity, obtains insurance against product liability from Entity B, an insurance company. Entity B then cedes the insurance contact with Entity C, another insurance company. 1. How does Entity B account for the insurance contract with Entity A? General model Premium Allocation Approach Ca or b d. Not accounted for under PFRS 17 How does Entity C account for the insurande contract ceded by Entity B? General model Premium Allocation Approach a or b d. Modification to general model för reinsurance contracts held 3 How does Entity B account for the insurance contract ceded to Entity C General modet Premium Allocation Approach a or Modification to geheral model for reinsurance contracts heldA customer obtains a purchase allowance from the retailer in the amount of $220 for damaged merchandise. Which of the following represents the journal entry for this transaction if the customer has not yet remitted payment? A. B. C.
- A company regularly purchases materials from a manufacturer on credit. Payments for thesepurchases occur within the company’s operating cycle. They do not include interest and are established withan invoice outlining purchase details, credit terms, and shipping charges. Which current liability situation doesthis best describe?A. sales tax payableB. accounts payableC. unearned revenueD. income taxes payableA customer obtains an allowance from the retailer in the amount of $450 for damaged merchandise. Which of the following represents the journal entry for this transaction, assuming the customer has not remitted payment? A. B. C.Briefly describe the guidelines provided by GAAP for the recognition of revenue by a franchisor for an initialfranchise fee