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Marr Co. sells its products in reusable containers. The customer is charged a deposit for each container delivered and receives a refund for each container
Marr Co. sells its products in reusable containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within 2 years after the year of delivery. Marr accounts for the container not returned within the time limit as being retired by sale at the deposit amount. The information for Year 4 is as follow Container deposits at December 31, Year 3, from deliveries in Year 2 $150,000 Year 3 430,000 $580,000 Deposits for containers delivered in Year 4 $780,000 Deposits for containers returned in Year 4 from deliveries in Year 2 $ 90,000 250,000 286,000 5626,000 in Marr's December 31. Year 4, balance sheet, the liability for deposits on returnable containers should be 5674,000 Year 3 Year 4 5584,000 5734,000 5494,000
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