I am working on another problem with sales with allowances. On October 2 a company A sold 6,000 of its camping
gear with a cost of 3600 to company B. As a part of the sales agreement company A includes a provision that if company B is dissatisfied with the product then company A will grant an allowance on the sale price or agree to take the product back. Company B expects total allowances to be 800 and on October 16 company A will grant allowance of $400 to company B because of the defects in the shipment. I am trying to substitute the information so I am getting the just of the analysis.
I need to know how to calculate any journal entries for company A to record the sale on Oct 2 and the granting of the allowance on Oct 6th and to learn how to record any adjustments for Oct 31 for company A. Company A now estimate the additional allowances of 250 will be granted to company B. I also need to know how to come up with the income statement and the statement of financial position for Company A on October 31. I got some f it but I am stuck. I have substituted the information so I can learn what I am missing
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