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Question 4 (9 points) On October 9, 2021, PC Inc. sold on account 800 food processors to a regional retailer, A&A Company. PC Inc. sells
Question 4 (9 points) On October 9, 2021, PC Inc. sold on account 800 food processors to a regional retailer, A&A Company. PC Inc. sells each food processor for $195. Each food processor has a cost of $100 to PC Inc. PC Inc. will allow A&A Company to return any number of the food processors within 60 days of the purchase date. Based on past experience, 3% of food processors sold will be returned within the refund period. On October 12, 2021, A&A Company returned 22 of the food processors to PC Inc. On November 7, 2021, A&A Company paid for the remainder of the food processors previously purchased. PC Inc. follows IFRS. Required: Prepare all entries for PC Inc. to account for: a, the sale of the food processors to A&A Company. (4 marks) b. the return of the food processors by A&A Company. (2 marks) c. the payment for the food processors by A&A Company. (1 mark) d. any journal entries required at the end of the return period. (2 marks)
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