Question
The following information is available for Indigo Hotel Supplies Ltd. regarding a recent contract with a customer: selling price. $12,500 Estimated returns. $1250 Amount of
The following information is available for Indigo Hotel Supplies Ltd. regarding a recent contract with a customer:
selling price. $12,500
Estimated returns. $1250
Amount of available cash discount $225
Costs of goods sold. $8130
Estimated inventory returns. $813
The performance obligation was completed on April 6, 2021. Prepare the journal entries to recognize the revenue from this contract assuming that Indigo Hotel Supplies uses the contract-based approach to recognize revenue and that management estimates that the customer will most likely pay within the discount period.
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Financial and Managerial Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
11th Edition
978-0538480895
