question archive Handicraft Inc
Handicraft Inc
Subject:AccountingPrice: Bought3
Handicraft Inc. starts selling purely native bags early August of this year for P1,300 each. This product is very suitable for gifts and passed the quality control for exports. The company also gives the customer a 20% discount coupon for additional purchases made for the next couple of months within the year. Approximately, 30% of the customers will utilize the coupon and these customers will purchase even if the price will be set at P1,500 each. As of December 31, the company was able to sell 800 pieces. a. How much sales revenue will be recognized? b. What is/are the performance obligation(s) in this contract? c. In the December 31 journal entry, what account will be debited? d. The difference between cash received from sale and the sales revenue will be credited to?
