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Phuong has also received information that the introduction of new legislation will require Phuong to individually list all of the ingredients in his Sauces on the outside of the containers. This will mean that Phuong will need to review some of his recipes to keep them in line with consumer demands. While Phuong is still able to sell his old stock as it is currently labelled the impact of this is that the old "non-conforming" sixpacks have fallen in popularity. From now Phuong will only be able to sell the remaining stock of these six packs for $12.95. Each sixpack costs $2.95 to package and ship for sale.
Problem 1: Show the General Journal entry (and any calculations) to display the impact of this and explain to Phuong the reason an entry is required.
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