User Account

All Pages

Indicate the amount of cost of goods sold

Assignment Help Accounting Basics
Reference no: EM132948907

Question - Crane Company sells 297 units of its products for $21 each to Logan Inc. for cash. Crane allows Logan to return any unused product within 30 days and receive a full refund. The cost of each product is $13. To determine the transaction price, Crane decides that the approach that is most predictive of the amount of consideration to which it will be entitled is the probability-weighted amount. Using the probability-weighted amount, Crane estimates that (1) 9 products will be returned and (2) the returned products are expected to be resold at a profit.

(a) Indicate the amount of Net sales.

(b) Indicate the amount of estimated liability for refunds.

(c) Indicate the amount of cost of goods sold that Crane should report in its financial statements (assume that none of the products have been returned at the financial statement date).

Reference no: EM132948907

Questions Cloud

What would be the impact on cash flow : Cost of goods sold was $9.20 million, depreciation expense was $3.20 million, What would be the impact on cash flow
Indicate the billiards company should make an accrual : How do Indicate whether the Billiards Company should make an accrual, a footnote disclosure, or neither of these for the contingency.
How a business utilizes accrual journal entries : Find an article that discusses how a business utilizes accrual journal entries. Then, present a summary of the article or provide a real-life example.
Record the entries made at the date of issuance : Record the entries made at the date of issuance and the date of exercise, assuming all warrants are exercised on December 31, 2023.
Indicate the amount of cost of goods sold : Crane Company sells 297 units of its products for $21 each to Logan Inc. for cash. Indicate the amount of cost of goods sold
What are kwan equivalent costs per equivalent unit : What are Kwan's equivalent costs per equivalent unit for October for materials under both process costing methods under WA and FIFO, respectively
Compute basic earnings per share : Compute basic earnings per share. $500,000 of 7% bonds at 103, which are due April 30, 2022.Each bond is convertible into 200 shares
Set up t account with petty cash entries : Set up t account with petty cash entries. Oct. 5 Collected $2,600, the amount due from A. Pitale's invoice no. 12674, customer on account
What is lion share of net income earned by jaguar : What is the amount of the amortization of the unrealized gain for 2020 arising from the transfer of TIGER's assets? What is LION's share of net income earned?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Seasonal effect on human births

If there is no seasonal effect on human births, we would expect equal numbers of children to be born in each season (winter, spring, summer and fall).

  Best guitars inc has offered to sell 12000 units of the

taylor manufactures 12000 units of a part used in its production to manufacture guitars. the annual production

  What is balance for contingent liabilities at end of year

what is the balance for contingent liabilities at the end of 2016

  Prepare the entry for the sale transaction

Using the original information; On April 1, 2020, the bonds were sold at 105 including accrued interest. Prepare the entry for the sale transaction

  What are the three types of auditor services

What are the three types of auditor services described in the Government Accountability Office's Government Auditing Standards, and how do they differ?

  How much would her employer take from her pay

If Most is single with two personal exemptions and had a take-home pay of $499.00 this week, how much would her employer take from her pay to satisfy part

  What is the accounts receivable balance at December

Net realizable value of accounts receivable 994,200. What is the accounts receivable balance at December 31, 2007

  How much loss may jill deduct

At beginning of the year, Jill's basis in her 40% limited partnership interest was $10,000. How much loss may Jill deduct if she has $40,000 of passive income

  Depletion and depreciation-mining khamsah mining company

As chief accountant for the company, you are to prepare a schedule showing estimated depletion and depreciation costs for each year of the expected life of the mine.

  Wrote off uncollectible accounts

XYZ wrote off uncollectible accounts totaling $20,000 during 2010. Under the cash basis of accounting XYZ would have reported 2010 sales of ?

  How does an integrated computerised accounting system

How does an integrated computerised accounting system assist management and directors fulfil their responsibilities in respect of the preparation

  Prepare the bank reconciliation at october

According to the bank statement, the bank balance as of October 31 was $8,765. Prepare the bank reconciliation at October 31

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd