Marr Co. sells its products in reusable containers. The customer is charged a deposit for each...

 

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Marr Co. sells its products in reusable containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within 2 years after the year of delivery. Marr accounts for the containers not returned within the time limit as being retired by sale at the deposit amount. The information for Year 4 is as follow Container deposits at December 31, Year 3, from deliveries in Year 2 $150,000 Year 3 430,000 $580,000 Deposits for containers delivered in Year 4 $780,000 Deposits for containers returned in Year 4 from deliveries in $ 90,000 Year 2 Year 3 250,000 Year 4 286,000 $626,000 In Marr's December 31, Year 4, balance sheet, the liability for deposits on returnable containers should be O $674,000 O 5584,000 O S734,000 O s494,000 Marr Co. sells its products in reusable containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within 2 years after the year of delivery. Marr accounts for the containers not returned within the time limit as being retired by sale at the deposit amount. The information for Year 4 is as follow Container deposits at December 31, Year 3, from deliveries in Year 2 $150,000 Year 3 430,000 $580,000 Deposits for containers delivered in Year 4 $780,000 Deposits for containers returned in Year 4 from deliveries in $ 90,000 Year 2 Year 3 250,000 Year 4 286,000 $626,000 In Marr's December 31, Year 4, balance sheet, the liability for deposits on returnable containers should be O $674,000 O 5584,000 O S734,000 O s494,000

Answer rating: 100% (QA)

Deposits balance at the end of Year3 5... View the full answer