In order to facilitate the sale of their new frozen fruit products to the restaurants,...
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Accounting
In order to facilitate the sale of their new frozen fruit products to the restaurants, BKL packages them in glass refillable bottles. The bottle costs BKL $ 5.20 each. BKL charges their customers a refundable deposit of $ 6 for each bottle at the point of sale. Each bottle of frozen costs is sold at $ 12, and during 2020, BKL sold a total of 10,000 bottles. BKL estimates that 65% of the bottles do not get returned or refunded. At the end of 2020, only 20% of the bottles are actually returned.
Problem: Under ASPE, the accounting policies relating to the transaction. The applicable sections from the CPA handbook need to be referenced. How to prepare entries for the transaction?
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