False Value Hardware began 2021 with a credit balance of $31,900
in the refund liability account. Sales and cash collections from
customers during the year were $730,000 and $690,000, respectively.
False Value estimates that 5% of all sales will be returned. During
2021, customers returned merchandise for credit of $22,000 to their
accounts.
False Value Hardware's 2021 income statement would report net sales
of:
Sales Revenue = $730000
Sales Return = $730000 x 5% = $36500
Net sale to be reported in income statement = Sales Revenue - Sales Return
= $730000 - $36500
= $693500.
False Value Hardware began 2021 with a credit balance of $31,900 in the refund liability account....
False Value Hardware began 2021 with a credit balance of $32,000 in the refund liability account. Sales and cash collections from customers during the year were $650,000 and $610,000, respectively. False Value estimates that 6% of all sales will be returned. During 2021, customers returned merchandise for credit of $28,000 to their accounts. What is the balance in the refund liability account at the end of 2021? A) $11,000. B) $39,000. C) $43,000. D) $21,000.
As of January 1, 2021, Farley Co. had a credit balance of $526,000 in its allowance for uncollectible accounts. Based on experience, 3% of Farley's credit sales have been uncollectible. During 2021, Farley wrote off $647,000 of accounts receivable. Credit sales for 2021 were $19,500,000. In its December 31, 2021, balance sheet, what amount should Farley report as allowance for uncollectible accounts? The balance in accounts receivable at the beginning of 2021 was $610. During 2021, $2,700 of credit sales...
False Value Hardware began 2018 with a credit balance of $33,000 in the allowance for sales returns account. Sales and cash collections from customers during the year were $640,000 and $600,000, respectively. False Value estimates that 8% of all sales will be returned. During 2018, customers returned merchandise for credit of $19,000 to their accounts. What is the balance in the allowance for sales returns account at the end of 2018? Multiple Choice $65,200. $14,000. $51,200. $70,200.
Question 2 1 pts Fancy Store began 2021 with a credit balance of $32,000 in the refund liability account. Sales and cash collections from customers during the year were $650,000 and $610,000, respectively. Assume 6% of all sales will be returned. During 2021, customers returned merchandise for credit of $28,000 to their accounts. What is the balance in the refund liability account at the end of 2021? A) $11,000. B) $39,000. C) $43,000. D) $21,000. A B с D Next...
1/ False Value Hardware began 2018 with a credit balance of $31,500 in the allowance for sales returns account. Sales and cash collections from customers during the year were $600,000 and $560,000, respectively. False Value estimates that 7% of all sales will be returned. During 2018, customers returned merchandise for credit of $21,000 to their accounts. What is the balance in the allowance for sales returns account at the end of 2018? Multiple Choice $52,500. $42,000. $10,500. $63,000. 2/ Oswego...
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $370,000. During 2021, Halifax sold merchandise on account for $12,200,000. Halifax's merchandise costs is 65% of merchandise selling price. Also during the year, customers returned $481,000 in sales for credit, with ...
uiz Instructions Question 3 1 pts Shinny Hobby makes only cash sales. It began 2021 with a credit balance of $32,000 in the refund liability account. Sales during 2021 were $600,000. Assume 6% of all sales will be returned. During 2021, customers returned merchandise for credit of $28,000 to their accounts. What is the net sales reported for 2021? A) $600,000. B) $564,000. C) $568,000. D) $43,000. A OB ОС D Next Previous
Question 2 Part A and B A. Oswego Clay Pipe Company sold $46,000 of pipe to Southeast Water District #45 on April 12 of the current year with terms 3/15, n/60. Oswego uses the gross method of accounting for cash discounts. What entry would Oswego make on April 12? Multiple Choice Accounts receivable 46,000 Sales 46,000 Accounts receivable 44,620 Sales discounts 1,380 Sales 46,000 Accounts receivable 44,620 Sales 44,620 Accounts receivable 46,000 Sales 44,620 Sales discounts 1,380 B. False Value...
4. Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $340,000. During 2021, Halifax sold merchandise on account for $11,600,000. Halifax's merchandise costs it 75% of merchandise selling price. Also during the year, customers returned $575,000 in sales for credit,...
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $450,000. During 2021, Halifax sold merchandise on account for $13,000,000. Halifax's merchandise costs is 65% of merchandise selling price. Also during the year, customers returned $514,000 in sales for credit, with...