2021. Ignore direct costs. Problem B. Charing Mobile sells smartphones to various distributors in bulk (in multiples of 100). Gallon Trade is one of the Charing Mobile's main customer-distributor. On January 1, 2020, they entered into a one- year agreement for the bulk-purchase of smartphones with the following pricing model arrangement: The first 200 items purchased - P25,000 per item sabor The next 100 items purchased - P22,000 per item Beyond 300 items purchased - P19,000 per item The reduction in prices after 200 items are considered as volume discounts. . Pohpolo Verdone Based on past experiences, Charing Mobile estimates that for the current year, the following likelihood will occur: 16,20 No of units purchased 600 units 700 units 800 units Probability 30% 45% 25% e cost periten 20 ots 2 Charing Mobile also maintains a gross profit rate 35% based on the original selling price. The Company maintains a perpetual record of its inventory items. 111270 On the same day, Gallon Trade ordered 200 smartphones to restock their inventory for the first quarter of 2020. The smartphones were immediately delivered. Gallon Trade paid in accordance with the pricing scheme per contract. The management of Charing Mobile assessed that the contract price with Gallon Trade is one with a variable consideration; hence, it needed to be accounted based on expected value of the average price per unit. On April 1, 2020, Gallon Trade ordered additional 400 smartphone units (600 smartphone units were delivered to them in total) and paid the price in accordance with the pricing scheme per contract. And final on October 1 2020, they ordered an additional 300 smartphone units (900 smartphone units were This is 800 units 25% Charing Mobile also maintains a gross profit rate of 35% based on the original selling price. The Company maintains a perpetual record of its inventory items. 1/1/2020 On the same day, Gallon Trade ordered 200 smartphones to restock their inventory for the first quarter of 2020. The smartphones were immediately delivered. Gallon Trade paid in accordance with the pricing scheme per contract. The management of Charing Mobile assessed that the contract price with Gallon Trade is one with a variable consideration; hence, it needed to be accounted based on expected value os the average price per unit. On April 1, 2020, Gallon Trade ordered additional 400 smartphone units (600 smartphone units were delivered to them in total) and paid the price in accordance with the pricing scheme per contract. And finally, on October 1, 2020, they ordered an additional 300 smartphone units (900 smartphone units were delivered to them in total) and paid the price in accordance with the pricing scheme per contract. This is the last order for the year, and thus will terminate the one-year contract. However, on October 15, 2020, Gallon Trade returned 40 smartphones to Charing Mobile. Charing Mobile was no longer obligated to replace the items as the contract has already lapsed and no warranty was provided to the units, nor refund the cash paid for the smartphones. The damaged smartphones were then sold for cash on October 20, 2020 to various customers on a retail basis based on the standalone selling price of P28,000, after paying for total repair costs of P20,000 on October 18, 2020. Required: 1. Determine the amount of revenue to be recognized on the following dates: a. January 1, 2020 b. April 1, 2020 c. October 1, 2020 d. October 20, 2020 2. Prepare all necessary accounting entries in 2020. Instalnut methurch 2021. Ignore direct costs. Problem B. Charing Mobile sells smartphones to various distributors in bulk (in multiples of 100). Gallon Trade is one of the Charing Mobile's main customer-distributor. On January 1, 2020, they entered into a one- year agreement for the bulk-purchase of smartphones with the following pricing model arrangement: The first 200 items purchased - P25,000 per item sabor The next 100 items purchased - P22,000 per item Beyond 300 items purchased - P19,000 per item The reduction in prices after 200 items are considered as volume discounts. . Pohpolo Verdone Based on past experiences, Charing Mobile estimates that for the current year, the following likelihood will occur: 16,20 No of units purchased 600 units 700 units 800 units Probability 30% 45% 25% e cost periten 20 ots 2 Charing Mobile also maintains a gross profit rate 35% based on the original selling price. The Company maintains a perpetual record of its inventory items. 111270 On the same day, Gallon Trade ordered 200 smartphones to restock their inventory for the first quarter of 2020. The smartphones were immediately delivered. Gallon Trade paid in accordance with the pricing scheme per contract. The management of Charing Mobile assessed that the contract price with Gallon Trade is one with a variable consideration; hence, it needed to be accounted based on expected value of the average price per unit. On April 1, 2020, Gallon Trade ordered additional 400 smartphone units (600 smartphone units were delivered to them in total) and paid the price in accordance with the pricing scheme per contract. And final on October 1 2020, they ordered an additional 300 smartphone units (900 smartphone units were This is 800 units 25% Charing Mobile also maintains a gross profit rate of 35% based on the original selling price. The Company maintains a perpetual record of its inventory items. 1/1/2020 On the same day, Gallon Trade ordered 200 smartphones to restock their inventory for the first quarter of 2020. The smartphones were immediately delivered. Gallon Trade paid in accordance with the pricing scheme per contract. The management of Charing Mobile assessed that the contract price with Gallon Trade is one with a variable consideration; hence, it needed to be accounted based on expected value os the average price per unit. On April 1, 2020, Gallon Trade ordered additional 400 smartphone units (600 smartphone units were delivered to them in total) and paid the price in accordance with the pricing scheme per contract. And finally, on October 1, 2020, they ordered an additional 300 smartphone units (900 smartphone units were delivered to them in total) and paid the price in accordance with the pricing scheme per contract. This is the last order for the year, and thus will terminate the one-year contract. However, on October 15, 2020, Gallon Trade returned 40 smartphones to Charing Mobile. Charing Mobile was no longer obligated to replace the items as the contract has already lapsed and no warranty was provided to the units, nor refund the cash paid for the smartphones. The damaged smartphones were then sold for cash on October 20, 2020 to various customers on a retail basis based on the standalone selling price of P28,000, after paying for total repair costs of P20,000 on October 18, 2020. Required: 1. Determine the amount of revenue to be recognized on the following dates: a. January 1, 2020 b. April 1, 2020 c. October 1, 2020 d. October 20, 2020 2. Prepare all necessary accounting entries in 2020. Instalnut methurch