2. Sander Importers, Inc. sells coffee pots for $40 each. On November 12, the company sold 50 to a customer on account with terms of 2/15, n/30. The customer paid for 20 of the coffee pots on November 27 and paid for the remaining 30 on December 11. Read the requirements? Requirement a. Provide the necessary journal entries for Sander to record these transactions under both the most likely-amount and expected-value methods. For the most likely-amount method, assume both that the customer will take the discount and won't take the discount. For the expected-value approach, assume that the customer is 70% likely to take the discount and ignore any constraints on variable consideration. (Ignore the journal entry that would typically be necessary to record the reduction of inventory and cost of goods sold.) Round to two decimal places. Begin by recording the transactions under the most-likely-amount method, assuming that the customer will take the discount. (Record debits first, then credits. Exclude explanations from any journal entries.) Nov. 12: The company sold 50 coffee pots to a customer on account with terms of 2/15, n/30. Account November 12 (1) (2) (3) (4) Nov. 27: The customer paid for 20 of the coffee pots. November 27 Account (5) (6) (7) (8) Dec. 11: The customer paid for the remaining 30 coffee pots Account December 11 (10) (11) (12) Now record the transactions under the most likely-amount method, assuming that the customer won't take the discount. (Record debits first, then credits. Exclude explanations from any journal entries.) Nov. 12: The company sold 50 coffee pots to a customer on account with terms of 2/15, n/30. November 12 Account |(13) (14) (15) || (16) Nov. 27: The customer paid for 20 of the coffee pots. November 27 Account (17) (18) (19) ||(20) Dec. 11: The customer paid for the remaining 30 coffee pots. December 11 Account (21) (22) (23) I (24) Finally, record the transactions under the expected-value method. (Record debits first, then credits. Exclude explanations from any journal entries. Round intermediary calculations and your final answers to the nearest cent.) Nov. 12: The company sold 50 coffee pots to a customer on account with terms of 2/15, n/30. November 12 Account (25) (26) || (27) I (28) Nov. 27: The customer paid for 20 of the coffee pots. Account November 27 (29) (30) || (31) (32) Dec. 11: The customer paid for the remaining 30 coffee pots. Account December 11 (33) || (34) (35) (36) Requirement b. Provide a comparison of the impact on the income statement for each method. Print First, prepare a partial income statement under the most likely amount method (Net). Review the journal entries prepared under this method. Most-Likely-Amount Method (Net) (37) Other Revenue: (38) Total Revenue Next, prepare a partial income statement under the most-likely-amount method (Gross). Review the journal entries prepared under this method. Most-Likely-Amount Method (Gross) (39) Less (40) Total Revenue Finally, prepare a partial income statement under the expected-value method. Review the journal entries prepared under this method. Expected-Value Method (41 (42) Net sales Other Revenue: Total Revenue a 1: Requirements Provide the necessary journal entries for Sander to record these transactions under both the most likely-amount and expected-value methods. For the most likely-amount method, assume both that the customer will take the discount and won't take the discount. For the expected-value approach, assume that the customer is 70% likely to take the discount and ignore any constraints on variable consideration. (Ignore the journal entry that would typically be necessary to record the reduction of inventory and cost of goods sold.) Round to two decimal places b. Provide a comparison of the impact on the income statement for each method. 2. Sander Importers, Inc. sells coffee pots for $40 each. On November 12, the company sold 50 to a customer on account with terms of 2/15, n/30. The customer paid for 20 of the coffee pots on November 27 and paid for the remaining 30 on December 11. Read the requirements? Requirement a. Provide the necessary journal entries for Sander to record these transactions under both the most likely-amount and expected-value methods. For the most likely-amount method, assume both that the customer will take the discount and won't take the discount. For the expected-value approach, assume that the customer is 70% likely to take the discount and ignore any constraints on variable consideration. (Ignore the journal entry that would typically be necessary to record the reduction of inventory and cost of goods sold.) Round to two decimal places. Begin by recording the transactions under the most-likely-amount method, assuming that the customer will take the discount. (Record debits first, then credits. Exclude explanations from any journal entries.) Nov. 12: The company sold 50 coffee pots to a customer on account with terms of 2/15, n/30. Account November 12 (1) (2) (3) (4) Nov. 27: The customer paid for 20 of the coffee pots. November 27 Account (5) (6) (7) (8) Dec. 11: The customer paid for the remaining 30 coffee pots Account December 11 (10) (11) (12) Now record the transactions under the most likely-amount method, assuming that the customer won't take the discount. (Record debits first, then credits. Exclude explanations from any journal entries.) Nov. 12: The company sold 50 coffee pots to a customer on account with terms of 2/15, n/30. November 12 Account |(13) (14) (15) || (16) Nov. 27: The customer paid for 20 of the coffee pots. November 27 Account (17) (18) (19) ||(20) Dec. 11: The customer paid for the remaining 30 coffee pots. December 11 Account (21) (22) (23) I (24) Finally, record the transactions under the expected-value method. (Record debits first, then credits. Exclude explanations from any journal entries. Round intermediary calculations and your final answers to the nearest cent.) Nov. 12: The company sold 50 coffee pots to a customer on account with terms of 2/15, n/30. November 12 Account (25) (26) || (27) I (28) Nov. 27: The customer paid for 20 of the coffee pots. Account November 27 (29) (30) || (31) (32) Dec. 11: The customer paid for the remaining 30 coffee pots. Account December 11 (33) || (34) (35) (36) Requirement b. Provide a comparison of the impact on the income statement for each method. Print First, prepare a partial income statement under the most likely amount method (Net). Review the journal entries prepared under this method. Most-Likely-Amount Method (Net) (37) Other Revenue: (38) Total Revenue Next, prepare a partial income statement under the most-likely-amount method (Gross). Review the journal entries prepared under this method. Most-Likely-Amount Method (Gross) (39) Less (40) Total Revenue Finally, prepare a partial income statement under the expected-value method. Review the journal entries prepared under this method. Expected-Value Method (41 (42) Net sales Other Revenue: Total Revenue a 1: Requirements Provide the necessary journal entries for Sander to record these transactions under both the most likely-amount and expected-value methods. For the most likely-amount method, assume both that the customer will take the discount and won't take the discount. For the expected-value approach, assume that the customer is 70% likely to take the discount and ignore any constraints on variable consideration. (Ignore the journal entry that would typically be necessary to record the reduction of inventory and cost of goods sold.) Round to two decimal places b. Provide a comparison of the impact on the income statement for each method