On March 1st, St. Patty sold to an Irish leprechaun a large four-leaf clover for $20,000 to be displayed during St Patty’s Day. The item was purchased under 1/10, n/30 terms and is fob destination. The item was picked up on March 4th and delivered on March 16th, and the delivery bill was $125. The item cost St. Patty $12,000 to make.

Upon receipt of the item, the leprechaun noticed that there was a dent in the side of the four-leaf clover, so it requested a $1,000 which St Patty granted. On March 31, the seller received a check for the balance due.

a. Prepare all necessary journal entries for St Patty using Net Method (should be five JEs).

b. Under each of five revenue recognition steps below answer the (1 point each bow)

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How is the step performed Revenue Step What date to Describe the JE, if record this needed step 1. Identify the contract with customers: 2. Identify the separate performance obligations in the contract: 3. Determine the transaction price: 4. Allocate the transaction price to the separate performance obligation(s): 5. Recognize revenue when each performance obligation is satisfied. How is the step performed Revenue Step What date to Describe the JE, if record this needed step 1. Identify the contract with customers: 2. Identify the separate performance obligations in the contract: 3. Determine the transaction price: 4. Allocate the transaction price to the separate performance obligation(s): 5. Recognize revenue when each performance obligation is satisfied.

Answer rating: 100% (QA)

The net method records sales and accounts receivable net of available discount An adjustment is not ... View the full answer