Discuss whether Shelby Davey behaved in a professional manner by subtracting the discount even though the discount period had expired.
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On April 18, 2020, Bontanica Company, a garden retailer, purchased $9,800 of seed, terms 2/10, n/30, from Whitetail Seed Co. Even though the discount period had expired, Shelby Davey subtracted the discount of $196 when he processed the documents for payment on May 1, 2020.
Discuss whether Shelby Davey behaved in a professional manner by subtracting the discount even though the discount period had expired.
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- On April 18, 2019, Botanica Company, a garden retailer, purchased $9,800 of seed, terms 2/10, n/30, from Whitetail Seed Co. Even though the discount period had expired, Shelby Davey subtracted the discount of $196 when he processed the documents for payment on May 1, 2019. Discuss whether Shelby Davey behaved in a professional manner by subtracting the discount even though the discount period had expired.On April 18, 2019, Bontanica Company, a garden retailer, purchased $9,800 of seed, terms 2/10, n/30, from Whitetail Seed Co. Even though the discount period had expired, Shelby Davey subtracted the discount of $196 when he processed the documents for payment on May 1, 2019.Discuss whether Shelby Davey behaved in a professional manner by subtracting the discount even though the discount period had expired.On December 1, 2021 Cardinal Company, a garden retailer, purchased $20,000 of corn seed, terms 2/10, n/30, from IowaFarm Co. Even though the discount period had expired, Rosa Lopez subtracted the discount of $400 when she processedthe documents for payment on December 15, 2021. Discuss whether Rosa Lopez behaved in a professional manner by subtracting the discount, even though the discount period had expired.
- Sandhill Corp. sells idle machinery to Hollis Company on July 1, 2020, for $33,000. Sandhill agrees to repurchase this equipment from Hollis on June 30, 2021, for a price of $34,320 (an imputed interest rate of 4%). Prepare any other necessary journal entries for Sandhill in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Interest Expense enter a debit amount enter a credit amount Liability to Hollis Company enter a debit amount enter a credit amountGoodBuy sells gift cards redeemable for GoodBuy products either in store or online. During 2021, GoodBuy sold $1,000,000 of gift cards, and $840,000 of the gift cards were redeemed for products. As of December 31, 2021, $30,000 of the remaining gift cards had passed the date at which GoodBuy concludes that the cards will never be redeemed. How much gift card revenue should GoodBuy recognize in 2021?TDC Department Store sells gift certificates that are redeemable only when the merchandise is purchased from its stores. It is the company’s policy to recognize the amount redeemed as realized. During 2019, ABC Department Store sold gift certificates amounting to P1,800,000 and redeemed gift certificates worth P1,560,000. Gift certificates outstanding at January 1, 2019 is P520,000. The company’s gross profit rate is 40%. What is the liability for outstanding gift certificates at December 31, 2019?
- Marin Inc. sold $18,000 of its designer tables to Santos Furniture and Design Studios on account. Marin estimates that $1,700 of these sales will either be returned or an allowance will be granted. Prepare the entries when (a) Marin makes the sale (use the gross method), and (b) Marin grants an allowance of $800 when some of the tables do not meet exact specifications but still could be sold by Santos. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit (a) (b)Dowell Fishing Supply, Inc., sold $47,000 of Dowell Rods on December 15, 2018, to Bassadrome. Because of a shipping backlog, Dowell held the inventory in Dowell's warehouse until January 12, 2019 (having assured Bassadrome that it would deliver sooner necessary). How much revenue should Dowell recognize in 2018 for the sale to Bassadrome? RevenueOn December 4, 2019, Dan Johnson, delivery truck driver for Farmers Products Inc., ran a stop sign and collided with another vehicle. On January 8, 2020, the driver of the other vehicle filed suit against Farmers Products for damages to the vehicle. Estimated damages to this vehicle were between $6,000 and $10,000 with no amount within the range more likely than any other amount. Farmers Products issued its 2019 financial statements on March 3, 2020. Required: 1. Prepare the disclosures and/or journal entries Farmers Products should make in preparing its December 31, 2019, financial statements. 2. If Farmers Products used IFRS, how would the disclosures and/or journal entries differ from those under U.S. GAAP?
- Dynasty Company sells gift certificates redeemable only whenmerchandise is purchased. Upon redemption, Dynasty Companyrecognizes the unearned revenue as realized. Information for 2019 is asfollows: Unearned Revenue, January 1, 2019 P650,000; Gift certificatessold P2,250,000; Gift certificates redeemed P1,950,000; Gift certificatesunredeemed for a long time P100,000; Cost of Goods Sold 60%. Whatamount should be reported as Unearned Revenue on December 31, 2019,following the ruling by the Department of Trade and Industry that giftcertificates no longer have an expiration period?On October 1, 2020, Jasmin's Clothing stores purchased $10,000 in clothing for resale at its various locations from Williams Fashion on terms 2/10, n30. The cost to Williams Fashion was $7200. On October 5, 2020, Jasmin's Clothing returned $800 to Williams Fashion for $576. On October 9, 2022, Jasmin's Clothing paid the balance due, taking advantage of the discounted terms. Create the journal entries for both Jasmin's Clothing and Williams Fashion. Jasmin's Clothing 10/1 10/5 10/9 Williams Fashion1. IRIS Department Store sells gift certificates that are redeemable only when the merchandise is purchased from its stores. It is the company’s policy to recognize the amount redeemed as realized. During 2019, ABC Department Store sold gift certificates amounting to P1,800,000 and redeemed gift certificates worth P1,560,000. Gift certificates outstanding at January 1, 2019, is P520,000. The company’s gross profit rate is 40%. What is the liability for outstanding gift certificates at December 31, 2019? 2. On January 1, 2020, HEYO Company issued P 10,000,000 convertible bonds with a stated rate of 12% at 110. The principal of the bonds is payable on December 31, 2024. Interest on the bonds is payable annually starting December 31, 2020. Each P 5,000 bond is convertible into 20 ordinary shares of P 50 par. Without the bond conversion privilege, the bonds would have sold to yield 10%. On December 31, 2021, after paying periodic interests, half of the bonds issued were converted to…