Question

Romeo Inc sells white boards that are sold to schools. Each white board has a fixed...

Romeo Inc sells white boards that are sold to schools. Each white board has a fixed price, f.o.b shipping point and payment is due 90 days after shipment. The schools can return a maximum of 15% of the order at their own expense. Sales are only made to schools, because they generally have great credit ratings. The normal return rate is 6% and the average collection period is 100 days. Romeo Inc follows IFRS. On July 16th, 2020 Romeo shipped white boards with a cost of $300,000 and included an invoice for $450,000. On August 30th, one school returned some white boards with an original invoice cost of $15,000. Romeo follows IFRS.

On July 16th, how much accounts receivable should Romeo record as a result of the sale of white boards?

On July 16th, how much cost of goods sold is record?

On August 30th, one school returned some white boards with an original invoice cost of $15,000. Romeo follows IFRS. which account of the following accounts would be debited to account for the return?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Romeo Inc sells white boards that are sold to schools. Each white board has a fixed...
Romeo Inc sells white boards that are sold to schools. Each white board has a fixed price, f.o.b shipping point and payment is due 90 days after shipment. The schools can return a maximum of 15% of the order at their own expense. Sales are only made to schools, because they generally have great credit ratings. The normal return rate is 6% and the average collection period is 100 days. Romeo Inc follows IFRS. On July 16th, 2020 Romeo shipped...
Sunland Publishing Co. publishes college textbooks that are sold to bookstores on the following terms. Each...
Sunland Publishing Co. publishes college textbooks that are sold to bookstores on the following terms. Each title has a fixed wholesale price, terms f.o.b. shipping point, and payment is due 60 days after shipment. The retailer may return a maximum of 30% of an order at the retailer’s expense. Sales are made only to retailers who have good credit ratings. Past experience indicates that the normal return rate is 12% and the average collection period is 72 days. The company...
Marlin Pools and Spas sold 80 hot tubs at $4,500 each. The cost of the hot...
Marlin Pools and Spas sold 80 hot tubs at $4,500 each. The cost of the hot tubs to Marlin is $2,600. The terms of the sale include a right to return for full refund within 30 days of purchase. Marlin expects that 3 of the hot tubs will be returned. Marlin follows IFRS 15. a) Record the journal entries related to the above transactions. Assume 1 hot tub is returned within the 30 days. b) Now assume Marlin uses ASPE,...
The transactions in this practice set were completed by Hydro Paddle Boards, Inc. during January, the...
The transactions in this practice set were completed by Hydro Paddle Boards, Inc. during January, the first month of the company’s fiscal year. Hydro Paddle Boards, Inc. is a manufacturing corporation that designs and manufactures a limited variety of custom stand-up paddle (SUP) boards. The SUP boards vary in size and performance, including beginner, intermediate, advanced, competition, and racing boards. Hydro Paddle Boards, Inc. maintains a job-order cost system. You have accepted a position with Hydro Paddle Boards, Inc. as...
Carnegie Corp. commissions, produces, and sells books through faith-based nonprofit organizations. The books are sold on...
Carnegie Corp. commissions, produces, and sells books through faith-based nonprofit organizations. The books are sold on the basis that a maximum of 50% of the quantity purchased can be returned within six months. The contract with the customer outlines the amount of consideration and the return policy and that payment is due within 30 days of the end of the return period. Carnegie has a good historical record of the proportion of books returned, on average. On 1 June, Carnegie...
On March 10, 2017, Sandhill Company sold to Barr Hardware 180 tool sets at a price...
On March 10, 2017, Sandhill Company sold to Barr Hardware 180 tool sets at a price of $51 each (cost $29 per set) with terms of n/60, f.o.b. shipping point. Sandhill allows Barr to return any unused tool sets within 60 days of purchase. Sandhill estimates that (1) 10 sets will be returned, (2) the cost of recovering the products will be immaterial, and (3) the returned tools sets can be resold at a profit. On March 25, 2017, Barr...
Pronghorn Publishing Co. publishes college textbooks that are sold to bookstores on the following terms. Each...
Pronghorn Publishing Co. publishes college textbooks that are sold to bookstores on the following terms. Each title has a fixed wholesale price, terms f.o.b. shipping point, and payment is due 60 days after shipment. The retailer may return a maximum of 30% of an order at the retailer’s expense. Sales are made only to retailers who have good credit ratings. Past experience indicates that the normal return rate is 12%. The costs of recovery are expected to be immaterial, and...
Sunland Growth Company is testing a number of new agricultural seeds that it has recently harvested....
Sunland Growth Company is testing a number of new agricultural seeds that it has recently harvested. To stimulate interest, it has decided to grant five of its largest customers the unconditional right to return these products if not fully satisfied. The right of return extends for four months. Sunland Growth sells these seeds on account for $1,550,000 (cost $600,000) on April 2, 2020. Customers are required to pay the full amount due by June 15, 2020. The company follows IFRS....
Sales-Related Transactions Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $57,900, terms...
Sales-Related Transactions Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $57,900, terms n/30. The The cost that is reported as an expense when goods is sold.cost of the goods sold is $34,700. Showcase issues a A form used by a seller to inform the buyer of the amount the seller proposes to credit to the account receivable due from the buyer.credit memo for $11,600 for merchandise returned prior to Balboa paying the original invoice. The cost...
On December 31, 2017, Cullumber Inc. has a machine with a book value of $ 1,222,000....
On December 31, 2017, Cullumber Inc. has a machine with a book value of $ 1,222,000. The original cost and related accumulated depreciation at this date are as follows. Machine $ 1,690,000 Less: Accumulated depreciation 468,000 Book value $ 1,222,000 Depreciation is computed at $ 78,000 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT