Credit Transaction Sales Returns and Allowances XX Allow for Sales Returns and

Credit transaction sales returns and allowances xx

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Credit Transaction Sales Returns and Allowances XX Allow for Sales Returns and Allow XX Cash Transaction Sales Returns and Allowances XX Accounts Payable XX Scenario: Seller estimates the returns and allowances prior to the physical return by customer
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On December 19, 2017, Wyatt Corp sells the game. Wyatt Corp sells 50 games to Gryzzl Corp for $100 each on account . Each game has a recorded cost of $40. Wyatt Corp estimates that 3 games will be returned by Gryzzl Corp during 2018. Assume that adjusting journal entries are recorded on December 31. What are the journal entries (both revenue and the cost journal entries) that Wyatt Corp records on December 31, 2017? Sales Return and Allowances Sales Returns and Allowances 300 Allowance for Sales Returns and Allowances 300 Estimated Inventory Returns 120 Cost of Goods Sold 120
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On December 19, 2017, Wyatt Corp sells the game. Wyatt Corp sells 50 games to Gryzzl Corp for $100 each for cash . Each game has a recorded cost of $40. Wyatt Corp estimates that 3 games will be returned by Gryzzl Corp during 2018. Assume that adjusting journal entries are recorded on December 31. What are the journal entries (both the revenue and the cost) that Wyatt Corp records on December 31, 2017? Sales Return and Allowances Sales Returns and Allowances 300 Accounts Payable 300 Estimated Inventory Returns 120 Cost of Goods Sold 120
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Repurchase Agreement What is a repurchase agreement? The seller transfers the asset to the customer but has an unconditional obligation or unconditional right to repurchase the asset at a later date If the seller has a forward or call option to repurchase the asset for an amount greater than or equal to its selling price, then the transaction is accounted for as a financing transaction As a result, no asset is removed from the seller’s book and a liability is recorded
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On January 1, 2016, Knope Corp sells an equipment to Perkins Corp for $200,000 in cash. Knope Corp agrees to repurchase the equipment on December 31, 2017 for $216,320 (unconditional obligation). Adjusting journal entries are recorded at the end of the year. Assume that any interest is compounded annually. What is the imputed interest? What are the journal entries associated with the sale? Repurchase Agreement To calculate the interest expense, we need to find the imputed interest rate PV = PV Factor * FV 200,000 = PV Factor * 216,320 200,000 216,320 = .9246 4% Should Knope Corp record a sale? No, Knope has an unconditional obligation to repurchase
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On January 1, 2016, Knope Corp sells an equipment to Perkins Corp for $200,000 in cash. Knope Corp agrees to repurchase the equipment on December 31, 2017 for $216,320 (unconditional obligation). Adjusting journal entries are recorded at the end of the year. Assume that any interest is compounded annually. What is the imputed interest? What are the journal entries associated with the sale?
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  • Winter '18
  • jane smith

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