Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The

image text in transcribedimage text in transcribedimage text in transcribed

Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container's cost. They receive a refund when the container is returned. During 2021, deposits collected on containers shipped were $910,000. Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2021, represented deposits of $577,000. In 2021, $807,000 was refunded and deposits forfeited were $43,500. Required: 1. Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2021. 2. Determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet. 1 Record the deposits collected. 2 Record the containers returned. 3 Record the deposits forfeited - record revenue. 4 Record the deposits forfeited - adjust inventory. Required 1 Required 2 Determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet. Balance on December 31

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Methodology For Auditing Forest Ecosystem Services In Agroforestry Enterprises Pinar Del Rio Cuba

Authors: Dairon Rojas Hernández

1st Edition

620351974X, 978-6203519747

More Books

Students also viewed these Accounting questions

Question

Write an equation that has solutions -1 and 3.

Answered: 1 week ago