During the month of January, Learnstream Company conducted the following transactions: Jan 1 Jan 2 Jan...

 

Transcribed Image Text:

During the month of January, Learnstream Company conducted the following transactions: Jan 1 Jan 2 Jan 5 Jan 17 Jan 20 Customers purchased $1,200 in gift cards. Sold merchandise for $8,600 cash plus 13% HST. The cost of this sale was $4,100. Learnstream uses a perpetual inventory system. Provided services to customers who had paid $8,000 cash in advance. The payment included HST of $920. Sold 1,900 units for $55 per unit plus 13% HST. Each unit costs $25. This new product has a one-year warranty. It is estimated that 9% of the units will be returned for repair at an average cost of $10 per unit. The company issued 30,000 loyalty points worth $1 each. Based on past experience, 20% of these points are expected to be redeemed. Cash sales related to the issuance of loyalty points were $250,000 Additional Information a. $150 of gift cards remain unused at the end of the month. b. 25 units were submitted for repair under the manufacturer's warranty during the month. Labour costs for these repairs were $100. Each unit required an average of $3.50 in parts to repair. C. 2000 points were redeemed during the month. 5 units of inventory costing $25 were claimed through this program. Required: 1. Record the above transactions. 2. Record any adjusting entries required on January 31st. During the month of January, Learnstream Company conducted the following transactions: Jan 1 Jan 2 Jan 5 Jan 17 Jan 20 Customers purchased $1,200 in gift cards. Sold merchandise for $8,600 cash plus 13% HST. The cost of this sale was $4,100. Learnstream uses a perpetual inventory system. Provided services to customers who had paid $8,000 cash in advance. The payment included HST of $920. Sold 1,900 units for $55 per unit plus 13% HST. Each unit costs $25. This new product has a one-year warranty. It is estimated that 9% of the units will be returned for repair at an average cost of $10 per unit. The company issued 30,000 loyalty points worth $1 each. Based on past experience, 20% of these points are expected to be redeemed. Cash sales related to the issuance of loyalty points were $250,000 Additional Information a. $150 of gift cards remain unused at the end of the month. b. 25 units were submitted for repair under the manufacturer's warranty during the month. Labour costs for these repairs were $100. Each unit required an average of $3.50 in parts to repair. C. 2000 points were redeemed during the month. 5 units of inventory costing $25 were claimed through this program. Required: 1. Record the above transactions. 2. Record any adjusting entries required on January 31st.

Answer rating: 100% (QA)

ANSWER Certainly Heres the table form for the transactions and adjusting entries for Learnstre... View the full answer