Question
Right of Return. Use the following information to answer Q5a, Q5b and Q5c. On Nov 2, 2019, the Fine Metal Co. sold Precision Inc, 200
Right of Return. Use the following information to answer Q5a, Q5b and Q5c.
On Nov 2, 2019, the Fine Metal Co. sold Precision Inc, 200 tool sets at a price of $50 each [cost $20 per set] terms n/60. Fine Metals customers have the right to return any unused tool sets within 30 days of purchase. Fine Metal estimate that 10 sets will be returned. On Nov 22, Precision returned 6 sets. Precision Inc. settled its account with Fine Metal on Dec 31, coinciding with the end of Metals financial year.
Provide the journal and adjusting entries required by Fine Metal for the transactions described above. [6 marks]
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| Q5a. Nov 2 |
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| Q5b. Nov 22 |
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| Q5c. Dec 31 |
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GAO Financial Audit Manual Volume 3 June 2018
Authors: United States Government GAO
2018 Edition
979-8733166001
