Take me to the text Chan-Nee Enterprises sells heavy-duty lawnmower equipment. On May 11, 2020, they sold a lawnmower (on account) for $44,000 which included a 4- year unlimited warranty. The corporation's accountant estimates that $2,800 will be paid out in warranty obligations. The cost of goods sold is $17,600. Assume Chan-Nee uses a perpetual inventory system. Prepare the journal entries relating to these transactions. Do not enter dollar signs or commas in the input boxes. Date Account Title and Explanation Debit Credit May 11 To record the sale of the lawnmower May 11 To record cost of goods sold May 11 To accrue for estimated warranty costs

Take me to the text Chan-Nee Enterprises sells heavy-duty lawnmower equipment. On May 11, 2020, they sold a lawnmower (on account) for $44,000 which included a 4- year unlimited warranty. The corporation's accountant estimates that $2,800 will be paid out in warranty obligations. The cost of goods sold is $17,600. Assume Chan-Nee uses a perpetual inventory system. Prepare the journal entries relating to these transactions. Do not enter dollar signs or commas in the input boxes. Date Account Title and Explanation Debit Credit May 11 To record the sale of the lawnmower May 11 To record cost of goods sold May 11 To accrue for estimated warranty costs

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 15EA: Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise....

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Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spaths incremental borrowing rate is 12%. The customer agrees to purchase an equal amount of inventory each year over the 5-year period so that a straight-line method of revenue recognition is appropriate. Required: Prepare the journal entries on Spaths books for 2019 and 2020. (Round answers to 2 decimal places.)
Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following transactions take place during the current year: A. On April 5, the company purchases 400 parts for $8.30 per part, on credit. Terms of the purchase are 4/ 10, n/30, invoice dated April 5. B. On May 5, Air Compressors does not pay the amount due and renegotiates with the supplier. The supplier agrees to $400 cash immediately as partial payment on note payable due, converting the debt owed into a short-term note, with a 7% annual interest rate, payable in three months from May 5. C. On August 5, Air Compressors pays its account in full. Record the journal entries to recognize the initial purchase, the conversion plus cash, and the payment.
Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions take place during the current year. A. On July 3, the company purchases thirty fountains for $1,200 per fountain, on credit. Terms of the purchase are 2/10, n/30, invoice dated July 3. B. On August 3, Serene does not pay the amount due and renegotiates with Kirkland. Kirkland agrees to convert the debt owed into a short-term note, with an 8% annual interest rate, payable in two months from August 3. C. On October 3, Serene Company pays its account in full. Record the journal entries to recognize the initial purchase, the conversion, and the payment.
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