Q.12 THANKS Prepare the journal entries including any rebates that Pharoah should make to record the sale, on account, of the 9,800 units inthe first quarter of the year assuming Pharoah follows ASPE. Ignore any cost of goods sold entry. (Credit account titles areautomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titlesand enter O for the amounts. List all debit entries before credit entries.)Account Titles and Explanation(To record sale on account)(To record rebate)DebitCredit Pharoah Company sells goods to Coronado Company during 2023. It offers Coronado the following rebates based on total sales toCoronado. If total sales to Coronado are 8,200 units, it will grant a rebate of 2%. If it sells up to 19,600 units, it will grant a rebate of4%. It if sells up to 30,000 units, it will grant a rebate of 6%. In the first quarter of the year, Pharoah sells 9,800 units to Coronado, onaccount, at a sales price of $98,000. Based on past experience, Pharoah has sold over 40,000 units to Coronado, and these salesnormally take place in the third quarter of the year.(a)Your Answer Correct Answer (Used)Prepare the journal entries including any rebates that Pharoah should make to record the sale, on account, of the 9,800 units inthe first quarter of the year assuming Pharoah follows IFRS. Ignore any cost of goods sold entry. (Credit account titles areautomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titlesand enter O for the amounts. List all debit entries before credit entries.)Account Titles and ExplanationAccounts ReceivableSales Revenue(To record sale on account)Sales RevenueContract Asset/Liability(To record rebate)Debit98,000Il5,880Credit98,0005,880

The journal entry involves calculation of different entry and amount are considered and the…

the first quarter of the year assuming Pharoah follows ASPE. Ignore any cost of goods sold entry. (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 O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation (To record sale on account) (To record rebate) Debit Credit

the first quarter of the year assuming Pharoah follows ASPE. Ignore any cost of goods sold entry. (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 O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation (To record sale on account) (To record rebate) Debit Credit

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 15E: On January 1, 2019, Piper Company entered into an agreement with Save-Mart to sell its most popular...

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