Pharoah Company sells 220 products for $100 each to Coronado Inc., payable in 30 days. Pharoah allows Coronado to return any unused product within 60 days and receive a full refund. The cost of each product is $67. To determine the transaction price, Pharoah decides that the approach that is most predictive of the amount of consideration to which it will be entitled is the most likely amount. Using the most likely amount, Pharoah estimates that: 1. Three products will be returned. 2. The costs of recovering the products will be immaterial. 3. The returned products are expected to be resold at a profit. How should Pharoah record this sale? Show journal entries under IFRS, including the entries to reflect cost of sales and the return of 2 units of product. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries) How should Pharoah record this sale? Show journal entries under IFRS, including the entries to reflect cost of sales and the return of 2 units of product. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tities and enter O for the amounts. List all debit entries before credit entries.) (To record cost of goods sold) Refund Liability 200 Accounts Receivable (To record returns from customers) Inventory 220 Estimated Inventory Returns 220 (To record return of inventory) How should Pharoah record this sale? Show journal entries under ASPE, including the entries to reflect cost of sales and the return of 2 units of product. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tities and enter O for the amounts. List all debit entries before credit entries) (To record cost of goods sold) I (To record returns from customers) (To record return of inventory) Pharoah Company sells 220 products for $100 each to Coronado Inc., payable in 30 days. Pharoah allows Coronado to return any unused product within 60 days and receive a full refund. The cost of each product is $67. To determine the transaction price, Pharoah decides that the approach that is most predictive of the amount of consideration to which it will be entitled is the most likely amount. Using the most likely amount, Pharoah estimates that: 1. Three products will be returned. 2. The costs of recovering the products will be immaterial. 3. The returned products are expected to be resold at a profit. How should Pharoah record this sale? Show journal entries under IFRS, including the entries to reflect cost of sales and the return of 2 units of product. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries) How should Pharoah record this sale? Show journal entries under IFRS, including the entries to reflect cost of sales and the return of 2 units of product. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tities and enter O for the amounts. List all debit entries before credit entries.) (To record cost of goods sold) Refund Liability 200 Accounts Receivable (To record returns from customers) Inventory 220 Estimated Inventory Returns 220 (To record return of inventory) How should Pharoah record this sale? Show journal entries under ASPE, including the entries to reflect cost of sales and the return of 2 units of product. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tities and enter O for the amounts. List all debit entries before credit entries) (To record cost of goods sold) I (To record returns from customers) (To record return of inventory)
