Organic Growth Company is presently testing a number of new agricultural seeds that it has recently harvested.
Question:
Instructions
a. Prepare the journal entry for Organic Growth at January 2, 2019.
b. Assume that one customer returns the seeds on March 1, 2019, due to unsatisfactory performance. Prepare the journal entry to record this transaction, assuming this customer purchased $100,000 of seeds from Organic Growth. The other receivables are collected.
c. Assume Organic Growth prepares financial statements quarterly. Prepare the necessary entries (if any) to adjust Organic Growth's financial results for the above transactions on March 31, 2019, assuming remaining expected returns of $200,000.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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