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Pronghorn Inc. enters into an agreement on March 1, 2020, to sell Werner Metal Company...

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Accounting

Pronghorn Inc. enters into an agreement on March 1, 2020, to sell Werner Metal Company aluminum ingots. As part of the agreement, Pronghorn also agrees to repurchase the ingots on May 1, 2020, at the original sales price of $160,000 plus 1%.

(a)

Prepare Pronghorn's journal entry necessary on March 1, 2020. (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.)

(b)

Prepare Pronghorn's journal entry for the repurchase of the ingots on May 1, 2020. (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.)

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