Pag Inc. is a sporting goods manufacturer. The firm uses a periodic inventory system. Pag Inc. s hipped $20000 of defective goods to a retailer. The retailer and Pag Inc. agreed that the retailer would keep the goods in exchange for $3500 allowance. The cost of the goods was $2000. What journal entry would Pag Inc record?

Pag Inc. is a sporting goods manufacturer. The firm uses a periodic inventory system. Pag Inc. s hipped $20000 of defective goods to a retailer. The retailer and Pag Inc. agreed that the retailer would keep the goods in exchange for $3500 allowance. The cost of the goods was $2000. What journal entry would Pag Inc record?

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 14E: On January 5, 2019, ShoeKing Corp. sells for cash 500 pairs of volleyball shoes to FootAction, a...

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Pag Inc. is a sporting goods manufacturer. The firm uses a periodic inventory system. Pag Inc. s hipped $20000 of defective goods to a retailer. The retailer and Pag Inc. agreed that the retailer would keep the goods in exchange for $3500 allowance. The cost of the goods was $2000. What journal entry would Pag Inc record?
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