Question

On July 10, Boogie Footware agrees to a contract to sell 800 pair of flapper shoes for $16,000 ($20.00 each). On September 1, after 500 pair of have been delivered, Boogie modifies the agreement to reduce the price of the remaining 300 pair of flapper shoes to $10 a pair. During September, Boogie delivers 200 pairs of shoes. a. How much revenue should Boogie recognize for the 500 pair that were delivered prior to September 1? $___________________ b. On September 1, when the contract is modified, prepare the necessary adjusting entry: Debit Credit c. How much revenue will Boogie recognize for the 200 pair delivered in the month of September? $¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬_____________________________

Answer 1

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