Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container's cost. They receive a refund when the container is returned. During 2018, deposits collected on containers shipped were $850,000. Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2018, represented deposits of $530,000. In 2018, $790,000 was refunded and deposits forfeited were $35,000. Required: 1. Prepare the appropriate journal entries for the deposits received and returned during 2018. 2. Determine the liability for refundable deposits to be reported on the December 31, 2018, balance sheet.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Daniel wants to buy a laptop computer, and he has $300 in savings. He can purchase a new computer for $279 or a refurbished [repaired or renovated] computer for $100. What should Daniel do next? A. Evaluate his decision to buy a computer. B.
Answers (2)
The production budget shows expected unit sales of 32,000. Beginning finished goods units are 3,600. Required production units are 33,600. What are the desired ending finished goods units?
Answers (1)
Libby is the sole proprietor of a travel agency. During the year, she withdrew $3,750 from her business for her personal use. How will the business account for this withdrawal? A. debit the distribution account B. credit the drawings account C.
Answers (2)
Elasticity is a. a measure of how much buyers and sellers respond to changes in market conditions. b. the study of how the allocation of resources affects economic well-being. c. the maximum amount that a buyer will pay for a good.
Answers (1)
Foley Distribution ServiceFoley Distribution Service paid $ 210 comma 000$210,000 for a group purchase of land, building, and equipment.
Answers (1)
New Questions in Business
The management of Arnold Corporation is considering the purchase of a new machine costing $430,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for one through five years are 0.909, 0.
Answers (1)
Stakeholder management capability is thought of in three levels. which is considered the highest level?
Answers (1)
GreatW, a wine company, had to market its products with a different name in a foreign market as itwas mandatory to translate the name into the local language.
Answers (1)
Harvey's Wholesale Company sold supplies of $46,000 to Northeast Company on April 12 of the current year, with terms 1/15, n/60. Harvey uses the net method of accounting for cash discounts.
Answers (1)
Suppose that the one-year interest rate is 5.0 percent in the United States; the spot exchange rate is $1.20/€; and the one-year forward exchange rate is $1.16/€. What must the one-year interest rate be in the euro zone to avoid arbitrage? A. 5.0% B.
Answers (1)