jessicaaflores13
31.05.2021 •
Business
Kingbird Company sells 290 units of its products for $18 each to Logan Inc. for cash. Kingbird allows Logan to return any unused product within 30 days and receive a full refund. The cost of each product is $11. To determine the transaction price, Kingbird decides that the approach that is most predictive of the amount of consideration to which it will be entitled is the probability-weighted amount. Using the probability-weighted amount, Kingbird estimates that (1) 10 products will be returned and (2) the returned products are expected to be resold at a profit.
Required:
a. Indicate the amount of Net sales.
b. Indicate the amount of estimated liability for refunds.
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Ответ:
Kingbird Company
a. The amount of Net Sales = $5,040.
b. The amount of the estimated liability for refunds = $180
Explanation:
a) Data and Calculations:
Units of products sold to Logan Inc. = 290
Selling price = $18
Sales revenue = $5,220 ($18 * 290)
Cost of each unit = $11
Expected returns = 10/290 = 0.03448
Net sales = $5,220 * (1 - 0.03448)
= $5,040
Estimated liability for refunds = $180 ($5,220 - $5,040)
Ответ:
is $210 time 12 month so it would become 2550 and minus the 126 of the interest rate so it would become 2394. I hope you are satisfied with my answer and feel free to ask for more if you have questions and further clarifications