Problem #2 - On January 13, 2022, Ramos Enterprises sold tool sets to Home Depot for...

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Problem #2 - On January 13, 2022, Ramos Enterprises sold tool sets to Home Depot for cash, f.o.b. shipping point. Ramos allows Home Depot to return any unused tool sets within 60 days of purchase. Ramos estimates the cost of recovering the products will be immaterial, and the returned tools sets can be resold at a profit. On January 28, 2022, Home Depot return some tool sets. Information concerning the sale and returns follows: Number of tool sets sold 42,750 Selling price of each tool set $85.75 Cost of each tool set $61.25 Number of sets estimated to be returned 2,138 Number of tool sets returned by Home Depot 1,283 Instructions: a) Prepare journal entries for Ramos to record (1) the sale on January 13, 2022, (2) the return on January 28, 2022, and (3) any adjusting entries required on January 31, 2022 (when Ramos prepares financial statements). Ramos believes the original estimate of returns is correct. b) Indicate the income statement and balance sheet reporting by Ramos on January 31, 2022, of the information related to the Home Depot sales transaction. Problem #2 - On January 13, 2022, Ramos Enterprises sold tool sets to Home Depot for cash, f.o.b. shipping point. Ramos allows Home Depot to return any unused tool sets within 60 days of purchase. Ramos estimates the cost of recovering the products will be immaterial, and the returned tools sets can be resold at a profit. On January 28, 2022, Home Depot return some tool sets. Information concerning the sale and returns follows: Number of tool sets sold 42,750 Selling price of each tool set $85.75 Cost of each tool set $61.25 Number of sets estimated to be returned 2,138 Number of tool sets returned by Home Depot 1,283 Instructions: a) Prepare journal entries for Ramos to record (1) the sale on January 13, 2022, (2) the return on January 28, 2022, and (3) any adjusting entries required on January 31, 2022 (when Ramos prepares financial statements). Ramos believes the original estimate of returns is correct. b) Indicate the income statement and balance sheet reporting by Ramos on January 31, 2022, of the information related to the Home Depot sales transaction.

Answer rating: 100% (QA)

Reqa Journal Entry Reqb Account title Explanation Working Income statement ... View the full answer