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Archer Appliances & Installation had the following transactions during the month of June. Customers have 30 days to pay any amounts due before interest and
Archer Appliances & Installation had the following transactions during the month of June. Customers have 30 days to pay any amounts due before interest and service fees accrue. 1. Archer sold $40,000 of goods on account to Markham Company on June 3. On June 10, Markham returned $2,000 of the goods for a refund. Markham paid the balance in full on June 26. 2. On June 2, Archer received a $600 cash deposit from Cushman Company for the installation of a sound system. Archer completed the installation on June 10 at a total cost of $1,800. Cushman paid the balance of the bill in cash on the date of installation. 3. On June 7, Archer sold $5,000 of goods on account to Soledad Company that were on consignment from Watters Inc. Soledad paid the bill in full on June 12. Archer charges a 15% commission fee on all consigned goods. 4. On June 15, Archer sold $25,000 of appliances to Berkley Company. Berkley paid cash at the time of the sale. The appliances come with a five-year warranty against defects. If purchased separately, the warranty would cost Berkley $3,000. 5. On June 18, Archer sold $1,400 of goods to Peterman Company for cash. Based on past experience, Archer expects Peterman to return 2% of the goods. Archer offers a 30-day, money-back return policy. Instructions: For each scenario, determine how much revenue should be recognized or reduced and on which date(s) we would recognize/reduce revenue. For example, let's say that we had the following scenario: On June 1, Archer sold $7,200 of goods for cash to Johnson Company. Johnson Company returned $200 of the goods on June 22." Your answer would be: Increase revenue by $7,200 on June 1 and decrease revenue by $200 on June 22
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