Recording Customer Deposits In 2020, Neighbor Co-Op Inc. sells 1,150 beverages in glass bottles and...
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Recording Customer Deposits In 2020, Neighbor Co-Op Inc. sells 1,150 beverages in glass bottles and receives a $1.00 deposit for each returnable bottle sold. As of December 31, 2020, a total of 920 glass bottles were returned and deposits on 138 bottles were forfeited because it is the company's policy that a deposit must be claimed within 30 days. The remaining 92 bottles are still with customers within the 30-day claim period. Required a. Record the collection of deposits in 2020. b. Record the return of glass bottles in 2020. c. Record the forfeiture of deposits in 2020 assuming that the cost of each bottle is $0.80. Note: Round your answers to the nearest whole dollar. Account Name Dr. Cr. a. Cash 1,350 x Cost of Goods Sold b. Gift Card Breakage Revenue 1,080 x Cash c. Gift Card Breakage Revenue Asset Retirement Obligation To record forfeiture of deposits Warranty Revenue Cash To adjust inventory related to forfeitures > X OX X 0 > OX X 32 x 0 0 OX 130 X 0 X 0 130 X
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