Question

Question 9 Crane Growth Company presenty tesdngaum w agincultreseds that it has re Cth celle theemulate interea 100 000) 17 onditional right months. Cra Customers are required pay the full amount due by June 15, 20117. The company follows IFRS. Prepare the journal entry for Crane Growth at April 2, 2017, assuming Crane Growth estimates returns of 20% based on prior experience. (Credit account titles are automatically indented when the entered. Do not indent manually. If no entry required, select "No Entry" for the account titles and enter 0 for the amounts.) amount Account Titles and Explanation Debit Credit Date April 2, 2017 (To record sales.) , 2017 April (To record cost of goods sold.) Assume that one customer returns the seeds on June 1, 2017. Prepare the journal entry to record this transaction, assuming this customer purchased $90,000 of seeds from Crane Growth. (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 0 for the amounts. Round cimal place answers e.g Account Titles and Explanation Debit Credit Date June 1, 2017 (To record the sales return.) June 1, 2017 (To record inventory return.)

Answer 1

Journal Entries:

Account Titles and Explanations Debit Credit Date Apr. 2, 2017 Accounts Receivable $2,000,000 Sales Revenue S2,000,000 (To record the sales) Apr. 2, 2017 Cost of Goods Sold $1,100,000 Merchandise Inventory (To record the cost of Goods Sold) $1,100,000 Jun. 1, 2017 Sales Returns $90,000 Accounts Receivable S90,000 (To record the sales return) |Jun. 1, 2017 Merchandise Inventory (S90,000*S1,100,000/S2,000,000) $49,500 $49,500 Cost of Goods Sold (To record the cost of goods returned)