Beachy Company produces and sells various types of beach toys. The company provides a flexible return...

 

Transcribed Image Text:

Beachy Company produces and sells various types of beach toys. The company provides a flexible return policy and management estimates that returns will approximate 15%. Listed below are the transactions for the month of June: June 1 Sold 18 water tubes for $250 each terms n/30 FOB destination. Each tube cost $95. 18 x 95 8 Customer from June 1 returned two tubes due to defects. The defective tubes were scrapped. 2495 Freight charges of $85 paid by the responsible party. 10 15 Sold 92 tubes for $225 each terms n/30. Each tube cost $95. 45 x 92 units 18 Received payment in full for June 1 transaction. 20 Received payment in full for June 15 transaction. 1710- 190 8740 1520= Instructions Journalize the transactions using the perpetual inventory system and the contract-based approach to revenue recognition (round all amounts to the nearest dollar). Beachy Company produces and sells various types of beach toys. The company provides a flexible return policy and management estimates that returns will approximate 15%. Listed below are the transactions for the month of June: June 1 Sold 18 water tubes for $250 each terms n/30 FOB destination. Each tube cost $95. 18 x 95 8 Customer from June 1 returned two tubes due to defects. The defective tubes were scrapped. 2495 Freight charges of $85 paid by the responsible party. 10 15 Sold 92 tubes for $225 each terms n/30. Each tube cost $95. 45 x 92 units 18 Received payment in full for June 1 transaction. 20 Received payment in full for June 15 transaction. 1710- 190 8740 1520= Instructions Journalize the transactions using the perpetual inventory system and the contract-based approach to revenue recognition (round all amounts to the nearest dollar).

Answer rating: 100% (QA)

Beachy Company June Transactions June 1 Inventory Dr 1710 Sales Cr 4500 Explanation Recorded the sal... View the full answer