Teal Company sells goods to Flint Company during 2020. It offers Flint the following rebates based on total sales to Flint. If total sales to Flint are 10,900 units, it will grant a rebate of 3%. If it sells up to 18,800 units, it will grant a rebate of 5%. If it sells up to 30,900 units, it will grant a rebate of 6%. In the first quarter of the year, Teal sells 11,800 units to Flint at a sales price of $129,800. Teal, based on past experience, has sold over 42,400 units to Flint, and these sales normally take place in the third quarter of the year. What amount of revenue should Teal report for the sale of the 11,800 units in the first quarter of the year.

Teal Company sells goods to Flint Company during 2020. It offers Flint the following rebates based on total sales to Flint. If total sales to Flint are 10,900 units, it will grant a rebate of 3%. If it sells up to 18,800 units, it will grant a rebate of 5%. If it sells up to 30,900 units, it will grant a rebate of 6%. In the first quarter of the year, Teal sells 11,800 units to Flint at a sales price of $129,800. Teal, based on past experience, has sold over 42,400 units to Flint, and these sales normally take place in the third quarter of the year. What amount of revenue should Teal report for the sale of the 11,800 units in the first quarter of the year.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6MC

See similar textbooks

Similar questions

Splish Company sells goods to Blossom Company during 2020. It offers Blossom the following rebates based on total sales to Blossom. If total sales to Blossom are 10,500 units, it will grant a rebate of 2%. If it sells up to 21,200 units, it will grant a rebate of 5%. If it sells up to 30,800 units, it will grant a rebate of 6%. In the first quarter of the year, Splish sells 10,600 units to Blossom at a sales price of $106,000. Splish, based on past experience, has sold over 37,600 units to Blossom, and these sales normally take place in the third quarter of the year.What amount of revenue should Splish report for the sale of the 10,600 units in the first quarter of the year. Revenue $
Carla Vista Company sells goods to Pearl Company during 2020. It offers Pearl the following rebates based on total sales to Pearl. If total sales to Pearl are 11,200 units, it will grant a rebate of 2%. If it sells up to 19,600 units, it will grant a rebate of 4%. It if sells up to 29,200 units, it will grant a rebate of 6%. In the first quarter of the year, Carla Vista sells 9,000 units to Pearl at a sales price of $90,000. Based on past experience, Carla Vista has sold over 40,000 units to Pearl, and these sales normally take place in the third quarter of the year.
Cullumber Company sells goods to Riverbed Company during 2020. It offers Riverbed the following rebates based on total sales to Riverbed. If total sales to Riverbed are 9,000 units, it will grant arebate of 3%. If it sells up to 21.100 units, it will grant a rebate of 5%. If it sells up to 32,200 units, it will grant a rebate of 6%, In the first quarter of the year. Culumber sells 9,900 units to Riverbed at a sales price of $99,000. Cullumber, based on past experience, has sold over 36,200 units to Riverbed, and these sales normally take place in the third quarter of the year. What amount of revenue should Cullumber report for the sale of the 9,900 units in the first quarter of the year. Reverue eTextbook and Media List of Accounts Attempts: 0 of 3 used Submit Arawer Savefor Later
Sandhill Company sells goods to Blossom Company during 2025. It offers Blossom the following rebates based on total sales to Blossom. If total sales to Blossom are 9,300 units, it will grant a rebate of 2%. If it sells up to 20,600 units, it will grant a rebate of 4%. If it sells up to 28,000 units, it will grant a rebate of 6%. In the first quarter of the year, Sandhill sells 10,100 units to Blossom at a sales price of $90,900. Sandhill, based on past experience, has sold over 39,000 units to Blossom, and these sales normally take place in the third quarter of the year. What amount of revenue should Sandhill report for the sale of the 10,100 units in the first quarter of the year? Revenue $
Manual Company sells goods to Nolan Company during 2020. It offers Nolan the following rebates based on total sales to Nolan. If total sales to Nolan are 10,000 units, it will grant a rebate of 2%. If it sells up to 20,000 units, it will grant a rebate of 4%. If it sells up to 30,000 units, it will grant a rebate of 6%. In the first quarter of the year, Manual sells 11,000 units to Nolan at a sales price of $110,000. Manual, based on past experience, has sold over 40,000 units to Nolan, and these sales normally take place in the third quarter of the year. What amount of revenue should Manual report for the sale of the 11,000 units in the first quarter of the year?
Wildhorse Company sells goods to Sheffield Company during 2023. It offers Sheffield the following rebates based on total sales to Sheffield. If total sales to Sheffield are 11,000 units, it will grant a rebate of 2%. If it sells up to 21,200 units, it will grant a rebate of 4%. It if sells up to 28,000 units, it will grant a rebate of 6%. In the first quarter of the year, Wildhorse sells 11,600 units to Sheffield, on account, at a sales price of $116,000. Based on past experience, Wildhorse has sold over 40,000 units to Sheffield, and these sales normally take place in the third quarter of the year. (a) Your answer is partially correct. Prepare the journal entries including any rebates that Wildhorse should make to record the sale, on account, of the 11,600 units in the first quarter of the year assuming Wildhorse follows IFRS. Ignore any cost of goods sold entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is…
Ivanhoe Company sells goods to Pharoah Company during 2025. It offers Pharoah the following rebates based on total sales to Pharoah. If total sales to Pharoah are 10,900 units, it will grant a rebate of 3%. If it sells up to 18,800 units, it will grant a rebate of 5%. If it sells up to 30,900 units, it will grant a rebate of 6%. In the first quarter of the year, Ivanhoe sells 11,800 units to Pharoah at a sales price of $129,800. Ivanhoe, based on past experience, has sold over 42,400 units to Pharoah, and these sales normally take place in the third quarter of the year. What amount of revenue should Ivanhoe report for the sale of the 11,800 units in the first quarter of the year? Revenue $
An entity sells car's spare parts to ZZZ Car Repair during 2020. The entity offers rebates of 3% on purchases up to $30,000 and 4% on purchases above $30,000 if the customer's purchases for the year exceed $120,000. In the past, ZZZ normally purchases more than $100,000 in parts during a calendar year. On March 15, 2020, ZZz Car Repair purchased $38,000 of parts. The journal entry to record the sale includes a a. debit to Accounts Receivable for $36,860. b. credit to Sales Revenue for $36,480. O c. credit to Sales Revenue for $36,860. d. debit to Accounts Receivable for $38,000.
Current Attempt in Progress Sunland Company sells goods to Sandhill Company during 2025. It offers Sandhill the following rebates based on total sales to Sandhill. If total sales to Sandhill are 10,500 units, it will grant a rebate of 3%. If it sells up to 18,300 units, it will grant a rebate of 5%. If it sells up to 30,800 units, it will grant a rebate of 6%. In the first quarter of the year, Sunland sells 10,800 units to Sandhill at a sales price of $118,800. Sunland, based on past experience, has sold over 37,800 units to Sandhill, and these sales normally take place in the third quarter of the year. What amount of revenue should Sunland report for the sale of the 10,800 units in the first quarter of the year? Revenue $
Amber gears sells gears to HTC Car Repair during 2018.It offers rebates of 2% on purchases up to $60,000 and 3% on purchases above $60,000 if the customer's purchases for the year exceed $200,000. In the past, HTC normally purchases $300,000 in parts during a calendar year. On March 25, 2018, HTC Car Repair purchased $74,000 of parts. The journal entry to record the purchase includes:
Caramel Company sells parts to Cotton Co during 2023. Caramel offers rebates of 2% on purchases up to $60,000 and 3% on purchases above $60,000 if the customer's purchases for the year exceed $200,000. In the past Cotton co normally purchases $300,000 in parts during a calendar year.On March 25, 2023, Cotton Co purchased $74,000 of parts. The journal entry to record the purchase includes
On December 28, 2021, Tristar Communications sold 10 units of its new satellite uplink system to various customers for $25,000 each. The terms of each sale were 1/10, n/30. Tristar uses the gross method to account for sales discounts. In what year will income before tax be affected by discounts, assuming that all customers paid the net-of-discount amount on January 6, 2022? By how much?