Zagat Inc. enters into an agreement on March 1, 2020, to sell Werner Metal Company aluminum ingots.

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Zagat Inc. enters into an agreement on March 1, 2020, to sell Werner Metal Company aluminum ingots. As part of the agreement, Zagat also agrees to repurchase the ingots on May 1, 2020, at the original sales price of $200,000 plus 2%.

Instructions

a. Prepare Zagat’s journal entry necessary on March 1, 2020.

b. Prepare Zagat’s journal entry for the repurchase of the ingots on May 1, 2020.

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Related Book For answer-question

Intermediate Accounting

ISBN: 978-1119503668

17th edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel

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Question Posted: Dec 04, 2019 07:09 AM

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Zagat Inc. enters into an agreement on March 1, 2020, to sell Werner Metal Company aluminum ingots.

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Because Zagat has an unconditional obligation forwar...View the full answer

Intermediate Accounting

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