LBI entered into twocontracts during 2021: with FloorTown Inc., to purchase flooring, and with C&P Lighting, to
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| LBI entered into twocontracts during 2021: with FloorTown Inc., to purchase flooring, and with C&P Lighting, to purchase lights. Both contracts were later determined to be onerous and the following provisions were recorded: | ||||
| · | FloorTown Inc.: $6,520 | |||
| · | C&P Lighting: $7,760 | |||
| It is now December 28, 2021, and the provisions for FloorTown Inc. and C&P Lighting need to be reviewed for the December 31, 2021, year-end financial statements. The retail market prices for both contracts have changed since the original provisions were recorded. The expected revenues for the FloorTown Inc. flooring have decreased from $37,550 to $35,160, and the C&P Lighting lights are now expected to sell at a total profit of $9,650. | ||||
Using this information, record the adjustments for the provisions at year end .prepare the journal entry FLOOR TOWN INC and C & P LIGHTING CONTRACT SEPARETE JOURNAL ENTRIES | ||||
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