Please show your solution for this one in a good accounting form. I would prefer if you present it in an excel. Thank you so much! ABC Co sold merchandise to DEF Cofor P120,000 and received P120,000for that sale one month later. Oneweek prior to receiving paymentfrom DEF, ABC made a P20,000payment to DEF for advertisingservices that have a fair value ofP15,000. After accounting for anynecessary adjustments, how muchrevenue should ABC record for themerchandise sold to DEF?

Given : ABC Co. sold merchandise to DEF for P$120,000 and received $P120,000 for that sale one month…

Answered: ABC Co sold merchandise to DEF Co for…

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Accounting

ABC Co sold merchandise to DEF Co for P120,000 and received P120,000 for that sale one month later. One

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 6MC

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