Question
In: Accounting
Sandhill Growth Company is testing a number of new agricultural seeds that it has recently harvested....
Sandhill Growth Company is testing a number of new agricultural seeds that it has recently harvested. To stimulate interest, it has decided to grant five of its largest customers the unconditional right to return these products if not fully satisfied. The right of return extends for four months. Sandhill Growth sells these seeds on account for $1,700,000 (cost $600,000) on April 2, 2020. Customers are required to pay the full amount due by June 15, 2020. The company follows IFRS.
a)Prepare the journal entry for Sandhill Growth at April 2, 2020, assuming Sandhill Growth estimates returns of 20% based on prior experience
b)Assume that one customer returns the seeds on July 1, 2020. Prepare the journal entry to record this transaction, assuming this customer purchased $110,000 of seeds from Sandhill Growth.
c)Prepare the journal entry for Sandhill Growth at April 2, 2020, assuming Sandhill Growth estimates returns of 20% based on prior experience. Sandhill follows ASPE.
d)Assume that one customer returns the seeds on July 1,
2020.
Prepare the journal entry to record this transaction, assuming this
customer purchased $110,000 of seeds from Sandhill Growth. Sandhill
follows ASPE.
c)
Solutions
Expert Solution
The following will be the entries for the SANDHILL GROWTH COMPANY
A) 
WORKING NOTES 
B)
The
other part (c) and (d) hae the same solutions as above.There will
be no change in the journal entries in aspe and ifrs.
ekkarill92 answered 2 years agoRelated Solutions
Sandhill Growth Company is testing a number of new agricultural seeds that it has recently harvested....
Sandhill Growth Company is testing a number of new agricultural
seeds that it has recently harvested. To stimulate interest, it has
decided to grant five of its largest customers the unconditional
right to return these products if not fully satisfied. The right of
return extends for four months. Sandhill Growth sells these seeds
on account for $1,950,000 (cost $600,000) on April 2, 2020.
Customers are required to pay the full amount due by June 15, 2020.
The company follows IFRS....
Crane Company is presently testing a number of new agricultural seeds that it has recently harvested....
Crane Company is presently testing a number of new agricultural
seeds that it has recently harvested. To stimulate interest, it has
decided to grant to five of its largest customers the unconditional
right of return to these products if not fully satisfied. The right
of return extends for 4 months. Crane estimates returns of 10%.
Crane sells these seeds on account for $1,370,000 (cost $685,000)
on January 2, 2017. Customers are required to pay the full amount
due by March...
Organic Growth Company is presently testing a number of newagricultural seeds that it has recently...
Organic Growth Company is presently testing a number of new
agricultural seeds that it has recently harvested. To stimulate
interest, it has decided to grant to five of its largest customers
the unconditional right of return to these products if not fully
satisfied. The right of return extends for 4 months. Organic Growth
sells these seeds on account for $1,500,000 (cost $800,000) on
January 2, 2014. Customers are required to pay the full amount due
by March 15, 2014.(c) Briefly...
Riverbed Company is presently testing a number of new agricultural seed planters that it has recently...
Riverbed Company is presently testing a number of new
agricultural seed planters that it has recently developed. To
stimulate interest, it has decided to grant to five of its largest
customers the unconditional right of return to these products if
not fully satisfied. The right of return extends for 4 months.
Riverbed estimates returns of 15%. Riverbed sells these planters on
account for $1,550,000 (cost $697,500) on January 2, 2020.
Customers are required to pay the full amount due by...
E18-8B (L03) (Sales with Returns) Natural Growth Company is presently testing a number of new agricultural...
E18-8B (L03)
(Sales with Returns) Natural Growth Company is
presently testing a number of new agricultural seeds that it has
recently harvested. To stimulate interest, it has decided to grant
to five of its largest customers the unconditional right of return
to these products if not fully satisfied. The right of return
extends for 4 months. Natural Growth sells these seeds on account
for $1,800,000 (cost $950,000) on January 2, 2017. Customers are
required to pay the full amount due...
Agricultural scientists are testing a new chicken feed to see whether it increases the number of...
Agricultural scientists are testing a new chicken feed to see
whether it increases the number of eggs laid. The scientists
divided a flock in half and gave half of the chickens the new feed,
while the other half were given a regular feed. The following table
shows the eggs laid in a 1-year period for a random sample of 10
chickens using the new feed and 10 chickens using the regular feed.
Assume that the population variance of the number...
12. An agricultural research company has developed two new types of soy bean seeds, call them...
12. An agricultural research company has developed two new types
of soy bean seeds, call them "seed A" and "seed B". A study is
conducted to determine which will produce a higher mean yield. To
test the two types of seed, 20 similar plots of land were randomly
placed into one of two groups. One group of ten plots was planted
with "seed A", while the other ten plots were planted with "seed
B". The yield of each field, in...
A random sample of 23 hemp seeds from a company were planted and harvested. The mean...
A random sample of 23 hemp seeds from a company were planted and
harvested. The mean number of days from seed to harvest was 127
days with a standard deviation of 17.2 days. Assume the sample
comes from a population that is normally distributed and construct
a 95% confidence interval estimate for σ.
Sandhill Stores is a new company that started operations on March 1, 2021. The company has...
Sandhill Stores is a new company that started operations on
March 1, 2021. The company has decided to use a perpetual inventory
system. The following purchase transactions occurred in March: Mar.
1 Sandhill Stores purchases $8,600 of merchandise for resale from
Octagon Wholesalers, terms 2/10, n/30, FOB shipping point. 2 The
correct company pays $155 for the shipping charges. 3 Sandhill
returns $1,200 of the merchandise purchased on March 1 because it
was the wrong colour. Octagon gives Sandhill a...
Technology has improved on agricultural business and as a result new smart agribusinesses are enhancing agricultural...
Technology has improved on agricultural business and as a
result new smart agribusinesses are enhancing agricultural value
chain. Farmers are provided with marketing opportunities that help
them link their products with potential customers. Other
agribusiness entrepreneurs are adding value to raw materials and
selling new products at competitive prices. There is the need to
create an online trading platform for farmers to trade their
commodities at favourable prices or store them to receive warehouse
receipts. The receipt system will give...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Tidewater Company uses the product cost concept of applying the cost-plus approach to product pricing. The...
- Create 5 short-term plan of technology projects that you can perform outside of an I.T. department...
- Derek plans to retire on his 65th birthday. However, he plans to work part-time until he...
- Toady and Froggy were running a vegan cafe together. The business was having financial difficulties.Betelguese, who...
- 1. The following questions concern Jesse Gelsinger who suffered from partial OTC. a. In the...
- Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales...
- TzeMay was one of the first women engineering students at ABC University. She graduated in 1995...
ADVERTISEMENT