Question
In: Accounting
1. Rebates and discounts On March 1, Martin Company sold and delivered goods to Shannon Inc....
1. Rebates and discounts
On March 1, Martin Company sold and delivered goods to Shannon Inc. for $300,000 on account. Shannon Company has been a customer for more than 10 years and has earned a 3% rebate on the overall purchase. Prepare the journal entry to recognize revenue. The journal entry for the cost of goods sold is not required.
2. Commissions, consignee/agent perspective
Royal vacations, a high-end vacation agent, sells tickets for all-inclusive European vacations to various customers. The company sells a $10,000 package and will receive a commission of 4% of the total price. Royal vacations must also remit the sales price to European Destinations, Company. Prepare the journal entry to record the receipt of cash and remittance and revenue recognized the agent.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
On March 1, 2020, Crane Company sold goods to Goosen Inc. for $702,000 in exchange for...
On March 1, 2020, Crane Company sold goods to Goosen Inc. for
$702,000 in exchange for a 5-year, zero-interest-bearing note in
the face amount of $1,182,911 (an inputed rate of 11%). The goods
have an inventory cost on Crane’s books of $395,000.
(a) Prepare the journal entries for Crane on March
1, 2020. (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...
On January 1, 2019, Dealership Inc. sold and delivered a car to a customer for $30,000...
On January 1, 2019, Dealership Inc. sold and delivered a car to
a customer for $30,000 cash. The car included a basic standard
one-year (assurance) warranty for major parts and a five-year
extended warranty (commences January 1, 2019) for
all parts and labour. Two performance obligations are identified:
car and standard warranty; and the extended warranty.
The car could have been sold separately for $28,000 and the
extended warranty for $4,000.
The estimated cost for the standard warranty is $350...
Metlock Company sells goods to Bonita Company during 2017. It offers Bonita the following rebates based...
Metlock Company sells goods to Bonita Company during 2017. It
offers Bonita the following rebates based on total sales to Bonita.
If total sales to Bonita are 9,500 units, it will grant a rebate of
2%. If it sells up to 20,500 units, it will grant a rebate of 5%.
If it sells up to 27,400 units, it will grant a rebate of 6%. In
the first quarter of the year, Metlock sells 11,300 units to Bonita
at a sales...
Philadelphia Company has the following information for March: Sales $455,000 Variable cost of goods sold 240,000...
Philadelphia Company has the following information for March:
Sales $455,000 Variable cost of goods sold 240,000 Fixed
manufacturing costs 70,000 Variable selling and administrative
expenses 52,000 Fixed selling and administrating expenses 35,000
For credit, show all your work Determine the: (a) manufacturing
margin (b) contribution margin (c) income from operations for
Philadelphia Company.
Ferguson Company has the following information for March: Sales $600,000 Variable cost of goods sold 276,000...
Ferguson Company has the following information for March:
Sales
$600,000
Variable cost of goods sold
276,000
Fixed manufacturing costs
90,000
Variable selling and administrative expenses
54,000
Fixed selling and administrative expenses
36,000
Determine the following for Ferguson Company for the month of
March:
a. Manufacturing margin
$
b. Contribution margin
$
c. Income from operations
$
Inventories and Cost of Goods Sold Hurley Inc. is a wholesaler of motorcycle parts. The company...
Inventories and Cost of Goods Sold
Hurley Inc. is a wholesaler of motorcycle parts. The company
uses a perpetual inventory system, and its fiscal year
ends on December 31. Hurley had the following transactions during
2012.
Transactions
Units
Unit Cost
(a) Inventory, Dec 31, 2011
10,000
$8
For the year 2012:
(b) Purchase, Mar 21
30,000
6
(c) Sale, Jun 20 ($13 each)
35,000
(d) Purchase, Aug 19
15,000
5.5
(e) Sale, Nov 20 ($10 each)
12,000
Required:
1. Compute...
Manual Company sells goods to Nolan Company during 2012. It offers Nolan the following rebates based on total sales to Nolan.
Manual Company sells goods to Nolan Company during 2012. It offers Nolan the following rebates based on total sales to Nolan. If total sales to Nolan are 10,000 units, it will grant a rebate of 2%. If it sells up to 20,000 units, it will grant a rebate of 4%. If it sells up to 30,000 units, it will grant a rebate of 6%. In the first quarter of the year, Manual sells 11,000 units to Nolan at a sales...
Marco Polo Map Company’s cost of goods sold for March was $345,000. March 31 work-in-process inventory...
Marco Polo Map Company’s cost of goods sold for March was
$345,000. March 31 work-in-process inventory was 90 percent of
March 1 work-in-process inventory. Manufacturing overhead applied
was 50 percent of direct-labor cost. Other information pertaining
to the company’s inventories and production for the month of March
is as follows:
Beginning inventories, March 1:
Raw material
$
18,000
Work in process
40,000
Finished goods
102,000
Purchases of raw material during March
112,000
Ending inventories, March 31:
Raw material
26,000
Work...
Marco Polo Map Company’s cost of goods sold for March was $345,000. March 31 work-in-process inventory...
Marco Polo Map Company’s cost of goods sold for March was
$345,000. March 31 work-in-process inventory was 90 percent of
March 1 work-in-process inventory. Manufacturing overhead applied
was 50 percent of direct-labor cost. Other information pertaining
to the company’s inventories and production for the month of March
is as follows:
Beginning inventories, March
1:
Raw material
$
18,000
Work in process
40,000
Finished goods
102,000
Purchases of raw material during
March
112,000
Ending inventories, March
31:
Raw material
26,000
Work...
Marco Polo Map Company’s cost of goods sold for March was $345,000. March 31 work-in-process inventory...
Marco Polo Map Company’s cost of goods sold for March was
$345,000. March 31 work-in-process inventory was 90 percent of
March 1 work-in-process inventory. Manufacturing overhead applied
was 50 percent of direct-labor cost. Other information pertaining
to the company’s inventories and production for the month of March
is as follows:
Beginning inventories, March 1:
Raw material
$
16,000
Work in process
40,000
Finished goods
102,000
Purchases of raw material during March
114,000
Ending inventories, March 31:
Raw material
26,000
Work...
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