Week 3 Intergrated Analysis One

.docx

School

University of Texas, Rio Grande Valley *

*We aren’t endorsed by this school

Course

6301

Subject

Accounting

Date

Feb 20, 2024

Type

docx

Pages

6

Uploaded by Doria08

Report
Week 3 Integrated Analysis One Doria McDuell The University of Texas Rio Grande Valley ACCT 6301 Accounting for Managers Dr. Akinloye Akindayomi January 26, 2024
Question 1: C6-48 on page 317-318 10a . Assume that Groupon sells an Invicta Chronograph Watch in its Product marketplace. The price of the watch is $80, and the watch cost Groupon $40. Using journal entries, illustrate how Groupon would record the sale of the watch. Sale of Invicta Chronograph Watch Account Debit Credit Cash $80 Cost of Goods sold $80 Inventory $40 Sales Revenue $40 This entry assumes Groupon receives cash for the watch at the time of sale. The cost of the watch to Groupon is $40, which is debited to Cost of Goods Sold and credited to Inventory. The sale of the watch generates $80 in revenue, which is credited to Sales Revenue.
10b. Assume that Groupon sells a restaurant voucher in its Local marketplace. The consumer pays $80, and Groupon will pat the restaurant $40 after the consumer has redeemed the voucher at the restaurant. The consumer has 60 days to redeem the voucher. Using journal entries, illustrate how Groupon would record the sale of the voucher. Assume that the consumer will redeem the voucher with certainty. Sale of Restaurant Voucher Account Debit Credit Cash $80 Accounts Receivables $80 Deferred Revenue $80 Sales E-Revenue $80 This entry assumes Groupon receives cash for the voucher at the time of sale. If the customer pays on credit, AR would be debited instead of Cash. The full amount of the voucher ($80) is initially recorded as Deferred Revenue, as Groupon has not yet earned this revenue until the customer redeems the voucher at the restaurant. The sale of the voucher generates $80 in potential revenue, which is credited to Sales Revenue.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help