Pharoah-Air is selling a new model of high-efficiency air conditioner. To stimulate interest,Pharoah-Air is granting certain large customers the unconditional right to return these air conditioners if not fully satisfied. The right of return extends for six months.Pharoah-Air estimates returns of 9%.Pharoah-Air sells these air conditioners on account for $20,790,000(cost $9,355,500) on April 2, 2017. Customers are required to pay the full amount due by June 15, 2017.
The journal entry forPharoah-Air on April 2, 2017. Use the gross method to record sales.(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.)
Assume that on May 15, 2017 one customer returns air conditioners that it purchased fromPharoah-Air for $390,000. The journal entry to record this transaction and the receipt of cash from customers on June 15, 2017.(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.)
Repeat parts (a) through (c) above assumingPharoah-Air uses the net method to record sales.(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.)
Date
Account Titles
Whispering Inc. sells an irrigation system that cost $194,000 to McGraw Company for $343,000 on March 2, 2017. The sales price includes an installation fee. The standalone price of the installation fee is $54,000. The standalone price of the irrigation system is $322,000. The installation is considered a separate performance obligation and is expected to take 3 months to complete. Allocate Whispering's total selling price for the irrigation system and installation to the two performance obligations (delivery of the irrigation system and installation). (Round intermediate calculations to 6 decimal places, 6.3. 1.246871 and nal answers to 0 decimal places, as. 5,125.) Irrigation system $ Installation $ Whispering delivered the irrigation system on March 14, 2017. The installation was completed on June 10, 2017. How much revenue should Whispering recognize in the rst quarter of 2017 related to its sale to McGraw? How much revenue should Whispering recognize in the second quarter? (Round answers to 0 decimal places, e.g. 5,125.) First Quarter Second Quarter Revenue $ $ Pharoah-Air is selling a new model of high-efciency air conditioner. To stimulate interest, Pharoah-Air is granting certain large customers the unconditional right to return these air conditioners if not fully satised. The right of return extends for six months. Pharoah-Air estimates returns of 9%. Pharoah-Air sells these air conditioners on account for $20,790,000 (cost $9,355,500) on April 2,2017. Customers are required to pay the full amount due by June 15,2017. Prepare the journal entry for Pharoah-Air on April 2,2017. Use the gross method to record sales. (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.) Account Titles and Explanation Debit Credit (To record sales) a l (To record cost of goods sold) Assume that on May 15, 2017 one customer returns air conditioners that it purchased from Pharoah-Air for $390,000. Prepare the journal entry to record this transaction and the receipt of cash from customers on June 15, 2017. (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.) Date Account Titles and Explanation Debit Credit 4 l % (To record sales returns) (To record cost of goods returned) Assume Pharoah-Air prepares nancial statements quarterly. Prepare the necessary entries (if any) to adjust Pharoah-Air's nancial results for the above transactions on June 30, 2017, assuming remaining expected returns of $1,330,000. (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.) Account Titles and Explanation Debit Credit (To record sales retuns) (To record cost of goods returned) Repeat parts (a) through (c) above assuming Pharoah-Air uses the net method to record sales. (Credit account titles are automatically indented when amount is entered. Do not indent manually. lf no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit % (To record sales) (To record cost of goods sold) % (To record estimated returns)
