Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 4CP
To determine
Prepare a MEMO to Mr. S of Company W.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
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
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?
Concord Corp. follows IFRS and sells its products in expensive, reusable containers that can be tracked. The customer is charged a
deposit for each container that is delivered and receives a refund for each container that is returned within two years after the year of
delivery. When a container is not returned within the time limit, Concord accounts for the container as being sold at the deposit
amount and credits the account Container Sales Revenue. Information for 2023 is as follows:
Containers held by customers at December 31, 2022, from deliveries in:
Containers delivered in 2023
Containers returned in 2023 from deliveries in:
Liability for Reusable Containers $
eTextbook and Media
List of Accounts
2021
2022
There would be
2021
$118,000
2022 291,300
315,000
$177,200
418,700
2023
Calculate the total amount that Riverbed should report as a liability for returnable deposits at
December 31, 2023.
Had Riverbed followed ASPE, would any of your answers in above parts be different?…
Chapter 6 Solutions
Financial Accounting
Ch. 6 - Prob. 1DQCh. 6 - Can a business earn a gross profit but incur a net...Ch. 6 - The credit period during which the buyer of...Ch. 6 - What is the meaning of (a) 1/15, n/60; (b) n/30;...Ch. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Name four accounts that would normally appear in...Ch. 6 - Prob. 9DQCh. 6 - Assume that Audio Outfitter Inc. in Discussion...
Ch. 6 - Prob. 1PEACh. 6 - Prob. 1PEBCh. 6 - Halibut Company purchased merchandise on account...Ch. 6 - Hoffman Company purchased merchandise on account...Ch. 6 - Journalize the following merchandise transactions:...Ch. 6 - Journalize the following merchandise transactions:...Ch. 6 - Prob. 4PEACh. 6 - Journalize the following merchandise transactions:...Ch. 6 - Prob. 5PEACh. 6 - Prob. 5PEBCh. 6 - Prob. 6PEACh. 6 - Journalize the following merchandise transactions:...Ch. 6 - Assume the following data for Lusk Inc. before its...Ch. 6 - PE 6-7B Customer allowances and returns
Assume the...Ch. 6 - Financial statement data for years ending December...Ch. 6 - Financial statement data for years ending December...Ch. 6 - During the current year, merchandise is sold for...Ch. 6 - For a recent year, Best Buy reported sales of...Ch. 6 - Monet Paints Co. is a newly organized business...Ch. 6 - Prob. 4ECh. 6 - A retailer is considering the purchase of 500...Ch. 6 - The debits and credits for four related entries...Ch. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - Journalize the entries for the following...Ch. 6 - After the amount due on a sale of 28,000, terms...Ch. 6 - The debits and credits for four related entries...Ch. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Showcase Co., a furniture wholesaler, sells...Ch. 6 - Prob. 15ECh. 6 - Prob. 16ECh. 6 - Journalize the entries to record the following...Ch. 6 - What is the normal balance of the following...Ch. 6 - Paragon Tire Co.s perpetual inventory records...Ch. 6 - Assume the following data for Oshkosh Company...Ch. 6 - Zell Company had sales of 1,800,000 and related...Ch. 6 - For the fiscal year, sales were 191,350,000 and...Ch. 6 - The following expenses were incurred by a...Ch. 6 - One item is omitted in each of the following four...Ch. 6 - On March 31, 2019, the balances of the accounts...Ch. 6 - Identify the errors in the following income...Ch. 6 - Summary operating data for Custom Wire Tubing...Ch. 6 - From the following list, identify the accounts...Ch. 6 - Based on the data presented in Exercise 6-25,...Ch. 6 - On July 31, 2019, the balances of the accounts...Ch. 6 - The Home Depot reported the following data (in...Ch. 6 - Kroger Co., a national supermarket chain, reported...Ch. 6 - Complete the following table by indicating for (a)...Ch. 6 - The following selected transactions were completed...Ch. 6 - Prob. 35ECh. 6 - The following data were extracted from the...Ch. 6 - Prob. 37ECh. 6 - Based on the following data, determine the cost of...Ch. 6 - Identify the errors in the following schedule of...Ch. 6 - United Rug Company is a small rug retailer owned...Ch. 6 - The following selected transactions were completed...Ch. 6 - The following selected transactions were completed...Ch. 6 - Prob. 3PACh. 6 - The following selected transactions were completed...Ch. 6 - The following selected accounts and their current...Ch. 6 - Selected accounts and related amounts for...Ch. 6 - Selected transactions for Capers Company during...Ch. 6 - Selected transactions for Babcock Company during...Ch. 6 - On December 31, 2019, the balances of the accounts...Ch. 6 - The following selected transactions were completed...Ch. 6 - The following selected transactions were completed...Ch. 6 - The following were selected from among the...Ch. 6 - The following selected transactions were completed...Ch. 6 - The following selected accounts and their current...Ch. 6 - Selected accounts and related amounts for Kanpur...Ch. 6 - Selected transactions for Niles Co. during March...Ch. 6 - Selected transactions for Essex Company during...Ch. 6 - On June 30, 2019, the balances of the accounts...Ch. 6 - Palisade Creek Co. is a merchandising business...Ch. 6 - Prob. 1CPCh. 6 - Prob. 2CPCh. 6 - Prob. 4CPCh. 6 - Prob. 5CPCh. 6 - Prob. 6CP
Knowledge Booster
Similar questions
- 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…arrow_forwardOn July 10, 2020, Bonita Ltd. sold GPS systems to retailers on account for a selling price of $1,020,000 (cost $816,000). Bonita 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, 2020, retailers returned systems to Bonita and were granted credits of $86,000. The company follows IFRS.arrow_forwardOn July 10, 2020, Bonita Ltd. sold GPS systems to retailers on account for a selling price of $1,020,000 (cost $816,000). Bonita 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, 2020, retailers returned systems to Bonita and were granted credits of $86,000. The company follows IFRS.arrow_forward
- answer in text form please (without image)arrow_forwardPlease use data table to calculate Gliss’s operating income for 2019,arrow_forwardCullumber Company sells goods to Riverbed Company during 2020. It offers Riverbed the following rebates based on total sales to Riverbed. If total sales to Riverbed are 9,000 units, it will grant arebate of 3%. If it sells up to 21.100 units, it will grant a rebate of 5%. If it sells up to 32,200 units, it will grant a rebate of 6%, In the first quarter of the year. Culumber sells 9,900 units to Riverbed at a sales price of $99,000. Cullumber, based on past experience, has sold over 36,200 units to Riverbed, and these sales normally take place in the third quarter of the year. What amount of revenue should Cullumber report for the sale of the 9,900 units in the first quarter of the year. Reverue eTextbook and Media List of Accounts Attempts: 0 of 3 used Submit Arawer Savefor Laterarrow_forward
- Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2024, the following transactions related to receivables occurred: Prepare the necessary journal entries for Evergreen for each of the above dates. For transactions involving the sale of merchandise, ignore the entry for the cost of goods sold. February 28 Sold merchandise to Lennox, Incorporated, for $30,000 and accepted a 6%, 7-month note. 6% is an appropriate rate for this type of note. March 31 Sold merchandise to Maddox Company that had a fair value of $23,500, and accepted a noninterest-bearing note for which $25,000 payment is due on March 31, 2025. April 3 Sold merchandise to Carr Company for $22,000 with terms 3/10, n/30. Evergreen uses the gross method to account for cash discounts. April 11 Collected the entire amount due from Carr Company April 17 A customer returned merchandise costing $4,200. Evergreen reduced the customer’s receivable balance…arrow_forwardAshvinarrow_forwardCinnamon Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2019, the entity issued 150,000 award credits and expects that 80% of these award credits shall be redeemed. The total stand-alone selling price of the award credits granted is measured reliably at P3,000,000. In 2019, the entity sold goods to customers for a total consideration of P12,000,0000 based on a standalone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be redeemed 2019 45,000 80% 2020 22,500 90% What is the revenue from points for 2019? What is the revenue from points for 2020?arrow_forward
- as show in the picarrow_forwardCarla Vista Company sells goods to Pearl Company during 2020. It offers Pearl the following rebates based on total sales to Pearl. If total sales to Pearl are 11,200 units, it will grant a rebate of 2%. If it sells up to 19,600 units, it will grant a rebate of 4%. It if sells up to 29,200 units, it will grant a rebate of 6%. In the first quarter of the year, Carla Vista sells 9,000 units to Pearl at a sales price of $90,000. Based on past experience, Carla Vista has sold over 40,000 units to Pearl, and these sales normally take place in the third quarter of the year.arrow_forwardMOA sells gift cards that are redeemable only at its stores. The company's policy is to record the redemption amount as realized. MOA sold P1,800,000 worth of gift certificates in 2019 and redeemed P1,560,000 worth of gift certificates. The value of outstanding gift certificates as of January 1, 2019 is P520,000. The company's gross profit margin is 40%. What is the obligation for outstanding gift cards at the end of the fiscal year on December 31, 2019?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education