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In: Accounting

Diversified semiconductors sells perishable electronic components. some must be shipped and stored in reusable protective containers....

Diversified semiconductors sells perishable electronic components. some must be shipped and stored in reusable protective containers. customers pay a deposit for each container received. the deposit is equal to the containers cost. they receive a refund when the container is returned. during 2016, deposits collected on containers shipped where $850,000. deposits are forfeited if containers are not returned within 18 months. containers held by customers at January one 2016 represented deposits a $530,000. in 2016, $790,000 was refunded and deposits forfeited were $35,000.

1. prepare the appropriate journal entries for the deposits received and return during 2016.

2. determine the liability for refundable deposits to be reported on the December 31st 2016 balance sheet.

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ekkarill92 answered 3 months ago
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