Business, 08.04.2020 17:21, Lavibookman7934

Zagat Inc. enters into an agreement on March 1, 2014, to sell Werner Metal Company aluminum ingots in 2 months. As part of the agreement, Zagat also agrees to repurhcase the ingots in 60 days at the original sales price of $200,000 plus 2%. (Because Zagat has an unconditional obligation to repurchase the ingots at an amount greater than the original sales price, the transaction is treated as financing.)

A) Prepare the journall entry necessary on March 1, 2014.

B) Prepare the journal entry for the repurchase of the ingots on May 1, 2014.

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Zagat Inc. enters into an agreement on March 1, 2014, to sell Werner Metal Company aluminum ingots i...