2.Knicks Company requires nonrefundable advance payments with special orders from customers for machinery constructed to their specifications. Information for 2023 follows: Customers advances, 12/31/22 P 500,000 Advances received with orders in 2023 840,000 Advances applied to orders shipped in 2023 600,000 Advances applicable to orders canceled in 2023 190,000 How much is the ending balance of advances on December 31, 2023?

2.Knicks Company requires nonrefundable advance payments with special orders from customers for machinery constructed to their specifications. Information for 2023 follows: Customers advances, 12/31/22 P 500,000 Advances received with orders in 2023 840,000 Advances applied to orders shipped in 2023 600,000 Advances applicable to orders canceled in 2023 190,000 How much is the ending balance of advances on December 31, 2023?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 22CE: Service Revenue Softball Magazine Company received advance payments of $75,000 from customers during...

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M Corp. receives advance payments with special orders for containers constructed to customer specifications. Related information for 2022 is as follows ($ in millions): Customer advances balance, Dec. 31, 2021 $ 100 Advances received with 2022 orders 204 Advances applicable to orders shipped in 2022 189 Advances from orders canceled in 2022 53 What amount should M Corp. report as a current liability for advances from customers in its December 31, 2022, balance sheet? Multiple Choice $62 million. $0. $304 million. $115 million.
Farina Company requires advance payments with special orders for machinery constructed to customer specifications. These advances are nonrefundable Data for the year are: Customer advances 6,800,000 Advances received with orders in 2021 9,000,000 Advances applied to orders shipped in 2021 8,700,000 Advances applicable to orders canceled in 2021 2,600,000 The December 31, 2021 balance sheet should report current liability for advances at? A.) 4,500,000 B.) 4,400,000 C.) 7,100,000 D.) 6,400,000
5. AVZ Company requires refundable advance payments with special orders for machinery constructed to the customer’s specifications. Information for 2023 is as follows: Customer advances-balance, December 31,2022 P 885,00 Advances received with orders in 2023 1,380,00 Advances applied with orders shipped in 2023 1,230,00 Advances applicable to orders canceled in 2023 375,000 What amount should AVZ Company report as a current liability for customer’s deposits in its December 31, 2023 balance sheet if AVZ’s policy is to return the deposit if the customer notifies AVZ about the cancellation?
Love Company requires advance payments with special orders for machinery constructed to customer specifications.These advances are nonrefundable. Information for the current year is:Advances from customers – January 1 P1,320,000Advances received with orders 2,160,000Advances applied to orders shipped 1,920,000Advances applicable to orders cancelled 120,000In Love Company’s December 31 statement of financial position, what amount should be reported as current liability foradvances from customers?a. P1,440,000 b. P1,560,000 c. P1,680,000 d. P0
Crazy Company requires advance payments with special orders for machinery constructed to customers specifications. The advances are non-refundable. Information for the current year is as follows: Advances from customers – 01/01/2021 - P1,180,000 Advances received with orders - P1,840,000 Advances applied to orders shipped - P1,640,000 Advances applicable to orders cancelled - P500,000 How much is the Advances from Customers at December 31, 2021?
ABC Company requires advance payments with special orders for machinery constructed to customer specifications. These advances are non-refundable. Data for the year are: Customer advances, January 1 P 5,800,000 Advances received with orders 12,000,000 Advances applied to orders shipped 10,700,000 Advances applicable to orders cancelled 2,500,000 How much is the liability fro customer advances at the end of the year?
Yellow Company reported accounts payable on December 31, 2017 at P900,000 before any necessary year-end adjusments relating to the following: * Goods were in transit from a vendor on December 31, 2009. The invoice cost was P50,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 4, 2020. *Goods shipped FOB shipping point on December 20, 2019 from a vendor were lost in transit. The invoice cost was P25,000. On January 5, 2020, the entity filed a P25,000 claim against the common carrier. *Goods shipped FOB destination on December 21, 2019 from a vendor were received on January 6, 2020. The invoice cost was P15,000. What amount should Yellow Company should report as accounts payable on December 31, 2019? 940,000 980,000 975,000 950,000 925,000
On 1 January 2020, Entity A sold 100 units of Product X to Entity B for $220 per unit payable on 31 December 2020. On the same date, the cash selling price of one Product X is $200. The customer obtained control of the product at contract inception. However, the contract permits the customer to return the product within 90 days, i.e. on or before 31 March 2020. Product X is a new product. It suffers insufficient testing before the sales to Entity B on 1 January 2020. Thus, Entity A has no relevant historical evidence of product returns or other available market evidence. On 31 March 2020, 15 units of Product X was returned. On 31 December 2020, all outstanding amount was settled. The cost of one Product X is $150. The end or reporting period of Entity A is 31 December. REQUIRED: Provide journal entries for Entity A from 1 January 2020 to 31 December 2020 under relevant accounting standards. ACCOUNTS FOR INPUT: | Bank | Payable | Receivable | Interest expense | Interest revenue |…
Tokwa Inc. requires advance payments with special orders for machinery constructed to the customer specifications. Information are as follows: • Customer Advances - Balance December 31, 2020- P118,000 • Advances received with orders in 2020- P184,000 • Advances applied to orders shipped in 2020- P164,000 • Advances applicable to orders canceled in 2020- P50,000 How much should be reported as a current liability for advances from customers on December 31, 2019?
2. During 2020, Joaquin Company introduced a new line of machines that carry a two-yearwarranty against manufacturer’s defects. Based on industry experience, the estimatedwarranty cost percentages related to peso sales are as follows:Year of sale 1%Year after sale 6%Sales and actual warranty expenditures for 2020 and 2021 were as follows:Year Sales Actual warranty expenditures2020 P1,000,000 P54,0002021 1,400,000 89,000a. How much is the warranty expense to be recognized in 2020 and 2021,respectively?b. What is the estimated warranty liability as of December 31, 2020 and 2021,respectively?
Pls answer this question with solutions. A manufacturer gives warranties at the time of sale to purchasers of its product. Under the terms of the contract of sale, the manufacturer undertakes to make good, by repair or replacement, manufacturing defects that become apparent within one year from the date of sale. On the basis of experience, it is probable (i.e., more likely than not) that there will be some claims under the warranties. Sales of ₱40 million were made evenly throughout 20X1. At December 31, 20x1 the expenditures for warranty repairs and replacements for the product sold in 20x1 are expected to be made 50% in 20x1 and 50% in 20x2. Assume for simplicity that all the 20x2 outflows of economic benefits related to the warranty repairs and replacements take place on June 30, 20x2. Experience indicates that 95% of products sold require no warranty repairs; 3% of products sold require minor repairs costing 10% of the sale price; and 2% of products sold require major…
Lowery Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or three-year period. Cash receipts from contracts are credited to unearned service contract revenues. This account had a balance of P600,000 at 31 December 2019 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of P150,000 at 31 December 2019. Outstanding service contracts at 31 December 2019 expire as follows: During 2020 During 2021 During 2022 P125,000 P200,000 P90,000 What amount should be reported as unearned service contract revenues in Lowery's 31 December 2019 statement of financial position?