Reference no: EM133147963
Questions -
Q1. False Value Hardware began 2021 with a credit balance of $32,500 in the refund liability account. Sales and cash collections from customers during the year were $700,000 and $660,000, respectively. False Value estimates that 6% of all sales will be returned. During 2021, customers returned merchandise for credit of $23,000 to their accounts. What is the balance in the refund liability account at the end of 2021?
Q2. Minarski Electronics sells computers and provides hardware maintenance services. On April 15t, Minarski sold a package deal containing a computer and a one-year unlimited maintenance/repair service for the computer at a bundle price of $1,000. If sold separately, the computer costs $876 and the one-year unlimited maintenance/repair service costs $324. How much revenue does Minarski Electronics recognize for the month ended April 30th assuming that revenue is accrued monthly?
Q3. Frasquita acquired equipment from the manufacturer on 6/30/2021 and gave a noninterest-bearing note in exchange. Frasquita is obligated the $560,000 on 4/30/2022 to satisfy the obligation in full.
If Frasquita accrued interest of $21,000 on the note in its 2021 year-end financial statements, what amount would it have recorded the equipment for on 6/30/2021?