On June 1, 2020, Cheyenne sold 90 washer/dryer units without installation to Laplante Rentals for $63,900. Laplante is a newer customer and is unsure how this product will work in its older rental units. Cheyenne offers a 60-day return privilege and estimates, based on prior experience with sales on this product, 4% of the units will be returned. Prepare the journal entries for the sale and related cost of goods sold on June 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 and enter 0 for the amounts.)
On June 1, 2020, Cheyenne sold 90 washer/dryer units without installation to Laplante Rentals for $63,900. Laplante is a newer customer and is unsure how this product will work in its older rental units. Cheyenne offers a 60-day return privilege and estimates, based on prior experience with sales on this product, 4% of the units will be returned. Prepare the journal entries for the sale and related cost of goods sold on June 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 and enter 0 for the amounts.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 19E: Rix Company sells home appliances and provides installation and service for its customers. On April...
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COGS is calculated using the formula, COGS = Beginning inventory + Purchases – Ending inventory
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