ABC Ranch & Farm

Case 1 .

ABC Ranch & Farm is a distributor of ranch and farm equipment. Its products range from small tools, power equipment for trench-digging and fencing, grain dryers, and barn winches. Most products are sold direct via its company catalogue and internet site. However, given some of its speciality products, select farm implement stores carry ABC’s products. Pricing and cost information on three of ABC’s most popular products are as follows

Respond to the requirements related to the following independent revenue arrangements for ABC Ranch and Farm

a. On January 1,2019 ABC sells 40 augers to Mills Farm & Fleet for $48,000. Mills signs a 6-month note at an annual interest rate of 12%. ABC allows Mills to return any auger that it cannot use within 60 days and receive a full refund. Based on prior experience, ABC estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). ABC’s costs to recover the products will be immaterial and the returned augers are expected to be resold at a profit

Required: Prepare the journal entry for ABC on January 1,2019. (6marks)

b. On August 10,2019 ABC sells 16 mini trenchers to a farm co-op in western Minnesota. ABC provides a 4% volume discount on the mini trenchers if the co-op has a 15% increase in purchases from ABC compared to the prior year. Given the slowdown in the farm economy, sales to the co-op have been flat, and it is highly uncertain that the benchmark will be met.

Required: Prepare the journal entry for ABC on August 10,2019. (4marks)

c. ABC sells three grain/hay dryers to a local farmer at a total contract price of $45,200. In addition to the dryers ABC provides installation which has a standalone selling price of $1,000 per unit installed. The contract payment also includes a $1,200 maintenance plan for the dryers for 3 years after installation. ABC signs the contract on June 20, 2019 and receives a 20% down payment from the farmer. The dryers are delivered and installed on October 1 2019 and full payment is made to ABC.

Required: Prepare the journal entries for ABC in 2019 related to this arrangement. (10 marks)

Hide 

Files: acct 2014.PNG
Scroll Below to View Our Previous Reviews

Calculate the price of your order

Continue with Order
Continue with Order
Continue with Order
Continue with Order

Simple Order Process

Fill in the Order Form

Share all the assignment information. Including the instructions, provided reading materials, grading rubric, number of pages, the required formatting, deadline, and your academic level. Provide any information and announcements shared by the professor. Choose your preferred writer if you have one.

Get Your Order Assigned

Once we receive your order form, we will select the best writer from our pool of experts to fit your assignment.

Share More Data if Needed

You will receive a confirmation email when a writer has been assigned your task. The writer may contact you if they need any additional information or clarifications regarding your task

Let Our Essay Writer Do Their Job

Once you entrust us with your academic task, our skilled writers embark on creating your paper entirely from the ground up. Through rigorous research and unwavering commitment to your guidelines, our experts meticulously craft every aspect of your paper. Our process ensures that your essay is not only original but also aligned with your specific requirements, making certain that the final piece surpasses your expectations.

Quality Checks and Proofreading

Upon the completion of your paper, it undergoes a meticulous review by our dedicated Quality and Proofreading department. This crucial step ensures not only the originality of the content but also its alignment with the highest academic standards. Our seasoned experts conduct thorough checks, meticulously examining every facet of your paper, including grammar, structure, coherence, and proper citation. This comprehensive review process guarantees that the final product you receive not only meets our stringent quality benchmarks but also reflects your dedication to academic excellence.

Review and Download the Final Draft

If you find that any part of the paper does not meet the initial instructions, send it back to us with your feedback, and we will make the necessary adjustments.