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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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epreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment wa
zalisa [80]

Complete question text:

1. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated residual value of $4,500 and two-year service life. <em>Equipment cost $16,000</em>

2. The company estimates future uncollectible accounts. The company determines $13,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 4% of these accounts are estimated to be uncollectible.

Account Receivable 46,400

Allowance 4,300

Answer:

depreciation expense 479.17 debit

  accumulated depreciation - equipment 479.17 credit

-----

uncollectible account expense 2,236 debit

  allowance for uncollectible amount 2,236 credit

Explanation:

We solve for the yearly depreciation:

(cost - residual value) / useful life

(16,000 - 4,500) / 2 = 5,750 per year

monthly depreciation: 5,750 / 12 = 479,17

--------------------

We solve for the different receivables ages:

13,000 x 40% = 5,200

46,400 - 13,000 = 33,400 not past due

33,400 x 4% = 1,336

we add them together and get 6,536

now we compare against the current allowance to determiantethe adjustment:

6,536 - 4,300 = 2,236

8 0
2 years ago
Please help meeee!!!!!
mestny [16]

Answer:

Banks are owned by shareholders, while credit unions are owned by members

Explanation:

Banks are financial institutions established by the founders to make profits. Due to their capital requirements, banks are large corporations owned by the private sector or government. Like other corporations, the owners of a bank are its shareholders.

Large organizations form credit unions to cater to their employees well being. Credit unions are not for profit organizations since they are formed to cater to its members' well beings. It means membership to the credit union is limited to the founding organization's employees unless otherwise stated. The members of the credit unions are its owners.

8 0
3 years ago
]To estimate the percentage of defects in a recent manufacturing​ batch, a quality control manager at Daimler minus Chrysler sel
krek1111 [17]

Answer:

Answer is option A, i.e. systematic sampling.

Explanation:

Systematic sampling is the type of probability sampling method of selection of samples out of the given group of homogenous nature. In this method, every Kth sample is selected until the required amount is obtained. Here, Chrysler selects every 16th van until he is successful in obtaining the 80 vans. Thus, Chrysler is using a systematic sampling method here.

3 0
3 years ago
Hodge Inc. has some material that originally cost $74,600. The material has a scrap value of $57,400 as is, but if reworked at a
Burka [1]

Answer:  If the material is reworked and sold, Hodge Inc. has a financial disadvantage of (- 4500).

Let's see why:

1) If we sell the material at its disposal value: We have a cost of $ 74600 and the income from sale would be $ 57400 =

57400 - 74600 = (-17200). We have a loss of $17200.

2) If we rework the material we will have an original cost of $ 74600, an additional cost for reworking of $ 1500 and the income from its sale would be $ 54400 =

54400 - (74600 + 1500) = (-21700) We have a loss of $ 21700.

Then comparing the 2 situations =

(-21700) - (-17200) = -4500. There is a financial disadvantage of $4,500 if the material is reworked instead of selling it as scrap.

6 0
3 years ago
The price elasticity of demand for beef is about 0.60. Other things equal, this means that a 20 percent increase in the price of
givi [52]

Answer:

Quantity of beef demanded will decrease by 12%

Explanation:

Data provided in the question:

Price elasticity of demand for beef, Ed = 0.60

Increase in the price of beef = 20%

Now,

Price elasticity of demand for beef,

Ed = [ Percentage change in Quantity ] ÷ [ Percentage change in price  ]

or

0.60 = [ Percentage change in Quantity ] ÷ 20%

or

Percentage change in Quantity = 0.60 × 20%

or

Percentage change in Quantity = 12%

Also,

Price and Quantity are inversely proportional

Hence,

With the increase in price, the quantity will decrease

Therefore,

Quantity of beef demanded will decrease by 12%

3 0
3 years ago
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