Port Automotive Supply Enters Into A Contract To Supply Wildhorse Electrocar Company With 290 Automotive Tires At A Pric 1 (39.79 KiB) Viewed 38 times
Port Automotive Supply enters into a contract to supply Wildhorse Electrocar Company with 290 automotive tires at a price of $37 per tire on August 4, 2021. The tires were delivered to Wildhorse on September 18, 2021, FOB destination, and terms are n/30. No returns are expected and Wildhorse does not offer a warranty on the tires because one is provided by the manufacturer. The cost of the tires to Port is $23 per tire. Port is unable to determine the collectibility of the amount from Wildhorse because it is a new company, but Wildhorse pays the amount in full on November 4, 2021. Using the revenue recognition criteria for the earnings approach, answer the following questions:
Part 4 Are the costs associated with the sale known? If so, how much are the costs? The costs is $ e Textbook and Media List of Accounts Save for Later Last saved 3 days ago. Attempts: 0 of 5 used Submit Answer Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Using multiple attempts will impact your score. 40% score reduction after attempt 4 Part 5 Prepare any journal entries required to recognize revenue on the appropriate dates. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record deferred gross profit.) (Collection on account.) Nov. 4, 2021 (To record sales and cost of goods sold.) e Textbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit Answer Using multiple attempts will impact your score. 40% score reduction after attempt 4
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