The following information is available for Indigo Hotel Supplies Ltd. regarding a recent contract with a...

 

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The following information is available for Indigo Hotel Supplies Ltd. regarding a recent contract with a customer: Selling price Estimated returns Amount of available cash discount Cost of goods sold Estimated inventory returns $12,500 1,250 225 8,130 813 E The performance obligation was completed on April 6, 2024. Prepare the journal entries to recognize the revenue from this contract assuming that Indigo Hotel Supplies uses the contract-based approach to recognize revenue and that management estimates that the customer will most likely pay within the discount period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) The following information is available for Indigo Hotel Supplies Ltd. regarding a recent contract with a customer: Selling price Estimated returns Amount of available cash discount Cost of goods sold Estimated inventory returns $12,500 1,250 225 8,130 813 E The performance obligation was completed on April 6, 2024. Prepare the journal entries to recognize the revenue from this contract assuming that Indigo Hotel Supplies uses the contract-based approach to recognize revenue and that management estimates that the customer will most likely pay within the discount period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)

Answer rating: 100% (QA)

Based on the information provided here are the journal entries to recognize ... View the full answer