Revenue recognition-point of sale

Assignment Help Accounting Basics
Reference no: EM13765375

(Revenue Recognition-Point of Sale)

On January 1, Jenny Company sells goods that have a cost of $400,000 to Denny Inc. for $550,000, with payment due in 1 year. The cash price for these goods is $450,000, with payment due in 30 days. If Denny paid immediately upon delivery, it would receive a cash discount of $5,000.

Instructions

(a) Prepare the journal entry to record this transaction at the date of sale.

(b) How much revenue should Jenny report for the entire year?

Reference no: EM13765375

Questions Cloud

Explains why these secondary sales might be of concern : Which of the best explains why these secondary sales might be of concern to De Beers?
How much did he borrow : A student borrowed some money from his father at 2% simple interest to buy a car. If he paid his father $360 in interest after 3 years, how much did he borrow?
What is the market value of the bond-use annual analysis : A 10-year bond pays 8% on a face value of $1,000. If similar bonds are currently yielding 10%, what is the market value of the bond?: Use annual analysis.
What was the principal after the first payment : Joe Jay purchased a new home with a $260,000 loan. He decided to use Loyal Bank for his mortgage and the bank required him to put down 20%. The monthly payment for the 6.50% 25- year mortgage is $1,404.43. What was the principal after the first payme..
Revenue recognition-point of sale : On January 1, Jenny Company sells goods that have a cost of $400,000 to Denny Inc. for $550,000, with payment due in 1 year. The cash price for these goods is $450,000, with payment due in 30 days. If Denny paid immediately upon delivery, it would..
What is the total deferred payment price of the garage : Becky Lewis financed the construction of a garage on her lot with a 9.3% add-on interest home improvement loan from the Guaranteed Savings Bank. The total price of the garage was $11,860 and was financed with equal monthly payments for 6 years. What ..
Case study- marbury v madison : Case Study: Marbury v. Madison, 5 U.S. 137, 1 Cranch 137, 2 L. Ed. 60 (1803), In 1803, the Supreme Court, led by Chief Justice John Marshall, decides the landmark case of William Marbury versus James Madison
Problems based on tombstones : Why YTM differs from coupon rate? What should we compare YTM with?
Revenue recognition-point of sale : Sheena Company sells goods that cost $400,000 to Richie Company for $530,000 on January 2, 2014. The sales price includes an installation fee, which is valued at $50,000. The fair value of the goods is $480,000. The installation is expected to tak..

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Compute the projected costs and the overhead rate for this

lund products inc. uses a predetermined overhead rate in its production assembly and testing departments. one rate is

  Using headings of assets liabilities owners equity

using headings of assets liabilities owners equity netincome show the affect if any from the transactions below.

  Last year product f76d involved 2 customer orders 434

activity rates from quattrone corporations activity-based costing system are listed below. the company uses the

  Grant is planning to factor some accounts receivable at the

1. beginning-of-the-year accounts receivable balance was 23100.2. net sales all on account for the year were 110400.

  Farrell company manufactures a product that sells for 50

farrell company manufactures a product that sells for 50 per unit. farrell incurs a variable cost per unit of 30 and

  Here are comparative balance sheets for syal company syal

here are comparative balance sheets for syal company. syal company comparative balance sheets december 31 assets 2012

  An expert panelist at the next society for human resource

Assume that you have been selected as an expert panelist at the next Society for Human Resource Management seminar to discuss the future of federal employees. Discuss at least two points that you would address in your speech regarding their fut..

  Prepare the journal entries necessary in the fund-based

Prepare the journal entries necessary in the fund-based and government-wide journals to record each of the following transactions

  Comprehensive annual financial report briefing

Prepare an overview of government accounting for a business person, using the State of Georgia as an example. Describe the entity and evaluate the Management Discussion & Analysis (MD&A) section.

  Payback period for the new hoist

Carleton Service Center just purchased an automobile hoist for $14,947. The hoist has a 5-year life and an estimated salvage value of $1,410. Compute the payback period for the new hoist.

  Statements concerning consolidated financial statements

Which of the following statements concerning consolidated financial statements is true?

  Rice hepburn and dimacro formed a partnership with rice

rice hepburn and dimacro formed a partnership with rice contributing 60000 hepburn contributing 50000 and dimacro

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd