Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I am having trouble with this problem. Any help would be great. Thanks Blossom Dinner Box Inc. is a catering company that sells meal kits
I am having trouble with this problem. Any help would be great. Thanks
Blossom Dinner Box Inc. is a catering company that sells meal kits that its customers can take home and quickly prepare. The company sells its meal kits at local grocery stores and has recently begun to offer a monthly subscription service, which delivers meal kits to the customer's home. Single meal kits can be purchased at grocery stores. Approximately 10% of the kits shipped to grocery stores each month are returned unsold and are then discarded. Blossom charges the grocery stores $18 for each meal kit. In December 2024, Blossom began selling three-month subscriptions for $1,080. Subscriptions are paid in advance and are non-cancellable. Blossom sold 710 subscriptions on December 1, 2024, which entitle the subscriber to 15 meal kits each month beginning in December 2024. During December, 5,100 meal kits were sold, on account, to grocery stores and all required subscriber meals were delivered. Grocery stores have 30-day terms of payment with Blossom. Based on your analysis in part (a), prepare the required journal entries for the contract. Blossom records adjusting journal entries monthly. Ignore any related costs to prepare the meal kits. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started