Coronado Company sells Stairmasters to a retailer, Physical Fitness, Inc., for $1,828,000. Coronado has a history of providing price concessions on this product if the retailer has difficulty selling the Stairmasters to customers. Coronado has experience with sales like these in the past and estimates that the maximum amount of price concessions is $295,000. (a) Determine the amount of revenue that Coronado should recognize for the sale of Stairmasters to Physical Fitness, Inc. Revenue (gross method) = ? Revenue (net method) = ?

Q: An entity sells goods with a warranty covering customers for the cost of repairs of any defects that…

A: Given No defects 60% Minor defect 25% Major defect 15%   A provision is a sum placed…

Q: Hinton Inc. is a software company that sells inventory management software and user support bundled…

A: Revenue each component=Bundled price*SSP/(SSP of both product)

Q: Foremost Manufacturing wants to buy $50,000 of sheet metal from Ore Industries on credit. Before…

A: This question deals with the concept of working capital. When seller sells the goods on credit then,…

Q: Erika Company operates a customer loyalty program. The entity grants loyalty  points for goods…

A: Answer: Product Sales = P7,000,000  Points - Stand-alone Selling Price = P1,000,000 (Assumption: It…

Q: Tractor Co. signed a contract to sell a tractor to Green Inc. for $55,000. Green paid for the…

A: Here given the details which can be recognized the sales revenue in the different situation which…

Q: On December 1, 2020, Hidilyn Inc. delivered 10 boxes of Otap bread and 10 packs of sample bread, for…

A: Here discuss about the details of the consignment sales and its remittance to the consignor related…

Q: PEANUTS Company, a grocery retailer operates a customer loyalty program. It grants program members…

A: In the case of accounting for a customer loyalty programme, a portion of sales from the total sales…

Q: Prepare journal entries from 2020 to 2023.

A:

Q: [The following information applies to the questions displayed below.]   Hult Games buys electronic…

A: Effective price refers to the price that should b come after deducting the discount. It is simply…

Q: mpany signed a contract charging a customer P600,000 to change the windows of a customer's house.…

A: Transactiion price is  the amount of consiideration an Company expects to receiives  for the…

Q: 1. A company enters into a contract with a customer to sell Products AA, Baba, and Kaka in exchange…

A: Transaction price of a contract will allocate in the ratio of observable standalone price of all…

Q: An entity, a grocery retailer, operates a customer loyalty program. The entity grants program…

A: revenue during 2022 Particulars  Amount  Sales from stand alone selling price  7000000 Add:…

Q: The Dotson Company, owner of Bleacher Mall, charges Rich Clothing Store a rental fee of $600 per…

A: Liabilities:  Liabilities are an obligation of the business to pay to the creditors in future for…

Q: In 2020, HP Company transferred goods to a retailer on consignment. The goods cost P450,000 and…

A: Consignment Account The basic factor which are included in the consignment business goods send by…

Q: Carryon Company sells a product and a 12-month service package for that for a combined price of…

A: Deferred Revenue: It is amount received by the company as prepayment for the goods or service…

Q: Baker Company sold consumer products that are packaged in boxes. The entity offered an unbreakable…

A: Formula: Estimated redemption units = Sales units x redemption percentage Multiplying sales units…

Q: William Company operates a customer loyalty program. T entity grants loyalty points for goods…

A: Revenue in another terms is an income.Revenue is generated is through business through profits.

Q: On December 1, 2020, Shamrock Inc. delivered 10 boxes of Otap bread and 10 packs of sample bread,…

A: COGS refer to the direct cost of producing the goods sold by the company. It includes cost of…

Q: Emefa Ltd is a manufacturing and retail company which prepares financial statements in accordance…

A: The 5 step model of IFRS 15 shows: Identify the contract terms with customers. Identify the…

Q: The list price of a secondhand van was P300,000 at a local car dealership.  However, a customer…

A: As per revenue recognition standard IFRS, the amount of revenue that should be recognized is amout…

Q: mith Corp. sells goods to Magnus for $500,000, payment due in 18 months after the goods are…

A: Sales means the amount recorded in books as revenue earned by selling the goods or services. Account…

Q: Familiar Company operates a customer loyalty program. The entity grants loyalty points for goods…

A: Revenue - Revenue is referred to as the money which is generated from business activities and it…

Q: Orange, Inc., sells a LearnIt-Plus software package that consists of their normal LearnIt math…

A:

Q: XZ Company, a grocery retailer operates a customer loyalty program. It grants program members…

A: In a customer loyalty program a company grants its members loyalty points on the spending the amount…

Q: The CC Manufacturing Company delivered ten DVD players to CLTV Company on consignment. These DVD…

A: Let total no. of units sold = n No. of units sold x sales price = Amount remitted + sales commission…

Q: Erika Company operates a customer loyalty program. The entity grants loyalty  points for goods…

A: To begin, keeping detailed records of your transactions helps to organize the data in your business.…

Q: James Company has an arrangement with with Jorge Company that operates a customer loyalty program.…

A: Customer loyalty programs are accounted for as per IFRS 15. Such a program is used by a company to…

Q: (Discounts) Fahey Company sells Stairmasters to a retailer, Physical Fitness, Inc., for $2,000,000.…

A: Requirement a:   Revenue amount (Using gross method): 52,000,000.   Revenue amount (Using net…

Q: As a result of the purchase, by how much will Pina Colada Corp. increase its van account?

A: Formula = Purchase price - Discount received + Sales Tax

Q: Al's Advertising Company trades in a red vehicle which had originally cost the Company $22,000 for a…

A:

Q: On March 20, Y3; Aylmer Inc entered into a consignment agreement with Belmont Services Corporation…

A: Consignment is the process where goods are sent by owner(consignor) to agent (consignee) for further…

Q: Davenport Corp. sells William's Furnishings Co., $60,000 worth of couches, chairs, and lounges for…

A: In the given question the goods worth $60000 sold by Davenport Crop.to William's Furnishings Co.to…

Q: Cullumber Company sells goods to Riverbed Company during 2020. It offers Riverbed the following…

A: This question deals with the concept of revenue recognition of the entity. When entity sells the…

Q: Fahey Company sells Stairmasters to a retailer, Physical Fitness, Inc., for $2,000,000. Fahey has a…

A: Generally Accepted Accounting Principles:   GAAP (Generally Accepted Accounting Principles) is a…

Q: Rosas Company started a promotional program in which for every 15 box tops returned, customers…

A: Rosas Company estimates that redemption will only be 60% of total sales. Thus, it will create a…

Q: During 1998, Day Company sold 500,000 boxes of cake mix under a new sales promotional program. Each…

A: Cost per coupon = Cost of pan + handling and shipping charges = P5 + 0.50 = P5.50

Q: How much is the expense to be recognized by ABC in 2021?

A: For every P200 spent - 1 point is granted For every P1 spent - 1/200 i.e.0.005 point is granted…

Q: According to Jorge Company:         On December 31, 2020, 28,800 points have been redeemed in…

A: Revenue is an accrual accounting principle used to ascertain particular events under which income is…

Q: Luke sells machines, and also offers installation and technical support services. The individual…

A: In the question, Company X has purchased a machine. Thus it is assumed that the package of products…

Q: An entity was offering premium as a sales promotion scheme and that during the year it purchased…

A: A promotion expense is a cost incurred by businesses in order to sell their goods or services to…

Q: Omega Company has the following two customers:   Woodruff Ensley Sales $900,000 $800,000 Cost of…

A: Formula: Gross profit = Sales - Cost of goods sold

Q: Redeemed Expected to be redeemed 2019 45,000 80% 2020 22,500 90%   What is the revenue from…

A: Actual sale of goods sold to customer on stand alone basis is: =P12,000,000 - P3,000,000 =P9,000,000…

Q: Luke consulting enters into a contract with Holand University to restructure Holand's process for…

A: Given: Fixed fee = P25,000 Additional earnings = P10,000

Q: XYZ, Inc. sold 100 widgets to ABC, Inc. on 1/1/18 for $50 per widget on account. The sales agreement…

A: Solution 1- A potential return of any goods sold to a customer should be accounted for as per…

Q: Among other select appliances, Lincoln Appliance Company sells high-end refrigerators on a…

A: GIVEN   Among other select appliances, Lincoln Appliance Company sells high-end refrigerators on a…

Q: Marin Inc. sold $18,000 of its designer tables to Santos Furniture and Design Studios on account.…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Furtastic manufactures imitation fur garments. On June 1, 2018, Furtastic made a sale to Willett’s…

A: 1.

Q: Arianne Company, a grocery retailer, operates a customer loyalty program. The entity grants program…

A: ●1 Answer Option d:6,650,000 Explanation: Computation of sales revenue: Particulars Amount(P)…

Q: Pearl Inc. sells storage structures of various sizes to homeowners and businesses. Respond to the…

A: Date Account Titles Debit Credit Apr. 5, 2017 Cash (5,500 x 15) $82,500     Unearned sales…

Q: eBay sells used products collected from different suppliers. Assume a customer purchases a used…

A: Revenue Recognition is an accounting principle that determines the bases when an organization can…