Homework Answers
Answer:
Option "3" is correct that says, "Recognizes that a customer returned merchandise and/or received an allowance.
When merchandise is returned, sales return and allowances account are debited to reduce sales and account receivable or cash are credited to refund/reduce cash that is owed by the customer. If a customer wants a cash refund, we can just credit cash, rather than account receivable while the debit entry will be the same. Sales return and allowances are called contra revenue account.
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A debit to Sales Returns and Allowances and a credit to Accounts Receivable: Multiple Choice Ο....
A debit to Sales Returns and Allowances and a credit to Accounts Receivable: Is recorded when...
A debit to Sales Returns and Allowances and a credit to Accounts Receivable: Is recorded when a customer takes a discount. All of the above. O Recognizes that a customer returned merchandise or received an allowance. Reflects an increase in amount due from a customer. Question 11 A company purchased $1,800 of merchandise on December 5. On December 7.10 returned $200 worth of merchandise. On December 8, it paid the balance in full, takin a 2% discount. The amount of...
Multiple Choice Questions: Regarding Sales Discount & Sales Returns & Allowances, which of the following is...
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Using T accounts for Cash, Accounts Receivable, Sales Tax Payable, Sales, Sales Returns and Allowances, and...
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Which of the following statements is true regarding sales returns and allowances? Multiple Choice Estimated sales returns and allowances are often material in relation to accounts receivable. The sales returns and allowances account is a contra-asset account. Ignoring estimated future returns and allowances has a minimal impact on reported earnings when the amount of actual returns and allowances is not material and does not vary greatly from year-to-year. When sales returns occur, they should be debited to the sales account.
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Which one of the following is a source of cash? Multiple Choice Ο Repurchase of common stock Ο Acquisition of debt Ο Purchase of inventory Ο Payment to a supplier Ο Granting credit to a customer Which one of the following is a source of cash? Multiple Choice Ο Increase in accounts receivable Ο Decrease in common stock Ο Increase in fixed assets Ο Decrease in accounts payable Ο Decrease in inventory
Regarding Sales Discount & Sales Returns & Allowances: Which of the following is true? Question 1...
Regarding Sales Discount & Sales Returns & Allowances: Which of the following is true? Question 1 options: For the potential sales returns occurring in the near future, we created the account "Refunds Payable" to capture the estimated amount of cost of inventory that will be returned in the near future. When the actual return happens, we Debit "Refunds Payable" to decrease it in one journal entry, and in another journal entry we Credit "Estimated Returns Inventory" to increase it. If...
Required information CP6-3 Recording Cash Sales, Credit Sales, Sales Returns, and Sales Allowances and Analyzing Gross...
Required information CP6-3 Recording Cash Sales, Credit Sales, Sales Returns, and Sales Allowances and Analyzing Gross Profit Percentage [LO 6-4, LO 6-6] [The following information applies to the questions displayed below.] Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $268,900 a. Sold merchandise for cash (cost of merchandise $149, 510). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund...
Griffin Shoe Company records Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts as contra-revenues.
Griffin Shoe Company records Sales Returns and Allowances, Sales
Discounts, and Credit Card Discounts as contra-revenues.July12Sold merchandise to customer at factory store who charged the
$300 purchase on her American Express card. American Express
charges a 1 percent credit card fee. Cost of goods sold was
$175.July15Sold merchandise to Customer T at an invoice price of $5,000;
terms 3/10, n/30. Cost of goods sold was $2,500.July20Collected cash due from Customer T.July21Before paying for the order, a customer returned shoes with...
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1. Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $755,000 and sales for the year total $8,560,000. The allowance account before adjustment has a debit balance of $10,200. Bad debt expense is estimated at 3/4 of 1% of sales. The allowance account before adjustment has a debit balance of $10,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $32,600. The allowance account...
A debit to Sales Returns and Allowances and a credit to Accounts Receivable: Is recorded when a customer takes a discount. All of the above. O Recognizes that a customer returned merchandise or received an allowance. Reflects an increase in amount due from a customer. Question 11 A company purchased $1,800 of merchandise on December 5. On December 7.10 returned $200 worth of merchandise. On December 8, it paid the balance in full, takin a 2% discount. The amount of...
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Required information CP6-3 Recording Cash Sales, Credit Sales, Sales Returns, and Sales Allowances and Analyzing Gross Profit Percentage [LO 6-4, LO 6-6] [The following information applies to the questions displayed below.] Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $268,900 a. Sold merchandise for cash (cost of merchandise $149, 510). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund...
Griffin Shoe Company records Sales Returns and Allowances, Sales
Discounts, and Credit Card Discounts as contra-revenues.July12Sold merchandise to customer at factory store who charged the
$300 purchase on her American Express card. American Express
charges a 1 percent credit card fee. Cost of goods sold was
$175.July15Sold merchandise to Customer T at an invoice price of $5,000;
terms 3/10, n/30. Cost of goods sold was $2,500.July20Collected cash due from Customer T.July21Before paying for the order, a customer returned shoes with...
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