Question: Alpha Corp is a major supplier to Beta Corp To
Alpha Corp. is a major supplier to Beta Corp. To encourage Beta to buy more, Alpha offers Beta an annual volume rebate of 1% of total invoiced purchases exceeding $100,000. Beta's invoiced purchases in 2014 totaled $110,000. Prepare the journal entry to record the volume rebate for 2014 in the books of
(a) Alpha and
(a) Alpha and
Relevant QuestionsGardi Inc. sold a unit of inventory to a buyer for $1,000 payable in one year. Gardi estimates that the interest rate for a similar financing arrangement would be 8%. The unit of inventory normally sells for $900. Calculate ...Finch Industries shipped $550,000 of merchandise on consignment to Royal Crown Company. Finch paid freight costs of $5,000. Royal Crown Company paid $1,500 for local advertising, which is reimbursable from Finch. By year ...Using the information provided in BE6-21, assume instead that ABC uses the completed-contract method and the earnings approach. Prepare a schedule to calculate the amount of revenues and gross profit or loss to be recognized ...For each of the following scenarios, how will these circumstances affect the recognition of revenue under the earnings approach and under the contract-based approach? (a) The anticipated revenues on a contract are $10 ...During 2014, Darwin Corporation started a construction job with a contract price of S4.2 million. Darwin ran into severe technical difficulties during construction but managed to complete the job in 2016. The following ...
Post your question