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Afina-wow [57]
2 years ago
15

Scott Company had sales of $12,350,000 and related cost of goods sold of $7,500,000. Scott provides customers a refund for any r

eturned or damaged merchandise. At the end of the year, Scott estimates that customers will request refunds for 0.8% of sales and estimates that merchandise costing $48,000 will be returned. Journalize the adjusting entries on December 31 to record the expected customer returns. Refer to the Chart of Accounts for exact wording of account titles.
Business
1 answer:
maria [59]2 years ago
4 0

The adjusting journal entries to record the adjustments in the books of Scott Company are as follows:

<h3>Journal Entries:</h3>

December 31;

Debit Sales $98,800

Credit Cash Refundable $98,800

  • To record expected cash refunds.

Debit Inventory $48,000

Credit Cost of goods sold $48,000

  • To record expected merchandise returns.

<h3>Data Analysis:</h3>

Sales = $12,350,000

Cost of goods sold = $7,500,000

Estimated percentage refunds = 0.8% of sales

Expected Refunds = $98,800 ($12,350,000 x 0.8%)

Returned goods = $48,000

Sales $98,800

Cash Refundable $98,800

Inventory $48,000

Cost of goods sold $48,000

Learn more about adjusting journal entries at brainly.com/question/13933471

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Suppose that a lumberyard has a supply of 10-ft boards, which are cut into 3-ft, 4-ft, and 5-ft boards according to customer dem
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Answer :

Some answers are attached below

Explanation:

a) Based on the information provided, below are the all possible sensible patterns the lumberyard may use to cut the 10-ft boards -

Pattern Number 3-ft boards 4-ft boards 5-ft boards Waste (<3-ft)

1                      3                   0                     0                       1                                                                        

2                                2                 1                          0                      0

3                             1                    0                           1                       2            

4                                 0                     1                          1                        1

5                           0                      2                           0                       2                  

6                      0                     0                            2                     0      

b) ILP Formulation

Objective Function

Minimize Number of 10 ft-boards to be cut

Z = x1+x2+x3+x4+x5+x6 where xi is the number of boards for pattern i

subject to constraints -

3x1+2x2+x3>=90 ----> 3-ft boards

x2+x4+2x5>=60 ----->4-ft boards

x3+x4+2x6>=60 ----->5-ft boards

Xi>=0 ---->Non-negativity constraint

Below is the excel solver formulation and solution -

The optimal number of Pattern 1,5,6 =0, Pattern 2,3 and 4 = 30

The minimum number of 10 ft-boards to be cut = 90

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3 years ago
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