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Shemon importers, Inc sells coffee pots for $40 each On November 12 , the company sold 30 to a customer on account with terms of
Shemon importers, Inc sells coffee pots for $40 each On November 12 , the company sold 30 to a customer on account with terms of 1/15,n/30 The customer paid for 15 of the coffee pots on November 27 and pald for the remainling 15 on December 11 . Read the Requirements a. Provide the necessary journal entries for Shermon to record these transactions under both the most-likely-amount and expected-value methods. For the most-likely-amount method, assume both that the customer will take the discount and won't take the discount. For the expected-value approach, assume that the customer is 55% likely to take the discount and ignore any constraints on variable consideration. (Ignore the journal entry that would typically be necessary to record the reduction of inventory and cost of goods sold.) Round to two decimal places. b. Provide a comparison of the impact on the income statement for each method
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