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1 year ago

What is the financial impact on a company when a customer returns a product for a refund?

Business

2 answers:

3241004551 [841]1 year ago

8 0

Sales revenue will not be impacted because the company has already accrued for estimated refunds and returns.

<h3>What is Sales Revenue?</h3>

Sales revenue is the money a business makes from selling products or offering services. Sales and revenue can, and frequently are, used interchangeably to refer to the same thing in accounting.

It is significant to remember that revenue does not always equate to money received. One part of sales revenue may be paid in cash, and the other part may be paid on credit using methods like accounts receivable.

Either the gross revenue total or the net revenue amount can be used to represent sales revenue on the income statement. All deductions for product returns, the potential for undelivered items, and the cost of bad debts, also known as uncollectible accounts receivables, are included in net revenue.

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Sati [7]1 year ago

6 0

Sales revenue will not be impacted because the company has already accrued for estimated refunds and returns.

<h3>What is Sales Revenue?</h3>

Sales revenue is the money a business makes from selling products or offering services. Sales and revenue can, and frequently are, used interchangeably to refer to the same thing in accounting.

It is significant to remember that revenue does not always equate to money received. One part of sales revenue may be paid in cash, and the other part may be paid on credit using methods like accounts receivable.

Either the gross revenue total or the net revenue amount can be used to represent sales revenue on the income statement. All deductions for product returns, the potential for undelivered items, and the cost of bad debts, also known as uncollectible accounts receivables, are included in net revenue.

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Ana Co. uses the allowance method to account for bad debts. At the end of the period, Ana's unadjusted trial balance shows an ac

Afina-wow [57]

Answer:

A. $800

Explanation:

Ana Co.

Sales $500,000

Accounts Receivable $40,000

Allowance for doubtful accounts $300 Credit

Bad Debts Expense = 2 % of $ 40,000= $ 800

The adjusting entry would be

Bad Debts Expense $ 800 Dr.

Allowance for doubtful accounts $800 Credit

As we already have a credit balance of $ 300 in the doubtful accounts we will increase it with an amount of $ 500.

Allowance for Doubtful Accounts $ 500 Debit

Account Receivable $ 500 Credit

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3 years ago

Lorinda has started to think about saving for retirement. She reads a recommendation that says she should save at least 3/10 of

Bumek [7]

Answer:

$\large\boxed{\large\boxed{\$ 13,200}}$

Explanation:

This is an algebra question about fractions.

You need to find 3/10 of the income, and the income is $44,000.

You must muliply the fraction 3/10 by the $44,000 income.

To multily one fraction by a whole number you convert the whole number to a fraction with denominator 1. Then multiply numerator with numerator and denominator with denominator. This is how:

$\dfrac{3}{10}\times \dfrac{\$ 44,000}{1}=\dfrac{3\times \$ 44,000}{10}=\\\\\\=\dfrac{\$ 132,000}{10}=\$ 13,200$

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3 years ago

Whispering Winds Corp. Income Statement For the Year Ended December 31, 2017 Sales revenue Cost of goods sold Operating expenses

garri49 [273]

Answer:

<h2> Whispering Winds Corp.</h2>

Statement of Cash Flows (Indirect Method) 2017

Cash flow from operating activities:

net income $161,100

Adjustments to reconcile net income:

+ depreciation expense $40,160

+ loss on sale of equipment $2,020

Change in current assets:

- increase in accounts receivable ($40,050)

- increase in inventory ($44,310)

+ increase in prepaid expenses $1,980

Change in current liabilities:

+ increase in accounts payable $2,580

- decrease in accrued exp. payable ($10,070)

Net cash provided by operating activities $113,410

Cash flow from investing activities:

purchase of new equipment ($164,450)

sale of old equipment $33,650

Net cash provided by investing activities ($130,800)

Cash flow from financing activities:

Proceeds from issue of new stocks $171,150

- redemption of bonds ($49,180)

- dividends paid ($85,680)

Net cash provided by financing activities $36,290

<u>Net increase in cash $18,900</u>

4 0

3 years ago

When the price of candy bars decreased from $0.55 to $0.45, the quantity demanded changed from 19,000 per day to 21,000 per day.

just olya [345]

Answer:

0.5

Explanation:

A screenshot is attached to get the full solution

Since the coefficient is < 1, it is inelastic

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3 years ago

The definition of market equilibrium states that at the _______________, the quantity of labor demanded by employers will equal

puteri [66]

The definition of market equilibrium states that the quantity of labor demanded by employers will equal the quantity supplied at an equilibrium wage.

<h3>What is an equilibrium?</h3>

The point at which the forces of demand and supply are equal from both the sides, and there is an expression of a perfect competition in the market, such point is known as an equilibrium.

Hence, option B holds true regarding equilibrium.

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3 0

2 years ago