Question
Mary Company sell shampoo in reusable containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned
Mary Company sell shampoo in reusable containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery.
The entity accounts for the containers not returned with the time limit as being retired by sale at the deposit amount.
The entity provided the following information for 2019:
Container deposits on Dec 31, 2018 from deliveries in 2017 150,000
2018 430,000
Deposits for containers delivered in 2019 780,000
Deposits for containers returned in 2019 from deliveries in: 2017 90,000
2018 250,000
2019 286,000
11. What is the Liability for deposits on December 31, 2019? ____________________
12. How much is the total Container Deposits on December 31, 2019? __________________
13. Total deposits returned in 2019 _____________________________
14. Expired and no longer refundable containers as of December 31, 2019 _______________________
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