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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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You might be interested in

Pie Co. uses the installment sales method to recognize revenue. Customers pay the installment notes in 24 equal monthly amounts,

Nataliya [291]

Answer:

C. The present value of the remaining monthly payments discounted at 12%.

Explanation:

To answer the question I have used following values to workout

Original Sales Value = 500,000

Interest rate = 12%

Numbers of periods = 24

First I calculate the Equal annual installment payment by using following excel formula

=PMT(rate,nper,pv,[fv],[type])

Where

PMT = Equal Annual Payment

rate = Interst rate = 12%/12 = 1%

nper = Tota numbers of payment = 24 payments

pv = oroginal sales value = 500,000

FV = Value outstanding after 24 payments = 0

Type = The payment made at the start or end of the year ( 0 for the payment made at the end of the period and 1 for the payment made at the beginning of the period ) = 0

placing values in the formula

=PMT(1%,24,50,000,0,0)

= $23,536.74

Now use these values to make the schedule which is attached with this answer.

After six Payment

Outstanding value = 385,961.72

Original sales price = 500,000

Percentage of outstanding balance to original sales value = 385,961.72 / 500,000 = 0.77 = 77%

The reamining balance is above 75% of the original sales price.

Note:

A payment schedule is attached for reference

Download pdf

3 0

3 years ago

How could jim get the views of employees who may have left the company due to perceptions of discrimination or unequal treatment

photoshop1234 [79]

Jim could get the views of employees who may have left the company due to perceptions of discrimination or unequal treatment by contacting them. For contacting the employees who have left the company due to perceptions of discrimination or unequal treatment Jim should first find out details of those people like phone number and email address.

After finding out the details, he should contact them and ask what is their reason to leave the company and if they feel discrimination or unequal treatment practice in company and if yes why they feel so. If they give confirmation regarding the same then Jim should talk to the current employees and find out how it happen and who practices this in firm.

After knowing the issue Jim should take appropriate steps to discard this practice from the organization.

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4 0

2 years ago

Last semester, Brita bought her textbooks over the Internet and saved a considerable amount of money. Classes start in a few day

Dmitriy789 [7]

Last semester, Brita bought her textbooks over the Internet and saved a considerable amount of money. Classes start in a few days, and she needs to decide right away how and where to purchase her books. Brita will most likely engage in "limited problem solving" process.

<h3>What is limited problem solving process?</h3>

Limited issue solving is another sort of consumer problem-solving that consumers employ when they need information about unknown brands in well-known product categories or when they make sporadic purchases of goods; it takes a fair amount of time for information collecting and consideration.

The characteristics of limit solving process are-

Limited issue solving is employed when consumers seek information about a new brand within a well-known product category or when they occasionally purchase products.
When buying a new, expensive, or infrequently purchased goods, consumers engage in lengthy problem solving.
Possibly when you need to find out information about an unusual brand in a well-known product area, takes a fair amount of time to gather information.
Clothing is one example where it is known the product class but not the brand.

Therefore, in the given case- Brita lacks the time to thoroughly consider all of his alternatives. Additionally, he will likely follow suit this time around given his recent success purchasing books online (unless he waited too long and cannot receive his books in time).

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6 0

2 years ago

PLEASE HELP ME :(

Olenka [21]

Which career requires less education than an Auditor?

A) Accountant

B) Bookkeeper

C) Credit Analyst

D) Financial Manager

6 0

3 years ago

During 2021, its first year of operations, Pave Construction provides services on account of $124,000. By the end of 2021, cash

7nadin3 [17]

Answer:

The adjusting entry for uncollectible accounts on December 31, 2021:

Debit Bad debts expense $9,600

Credit Allowance for uncollectible accounts $9,600

Explanation:

During 2021, Pave Construction provides services on account of $124,000. By the end of 2021, cash collections on these accounts total $92,000.

The balance of uncollected accounts on December 31, 2021 = $124,000 - $92,000 = $32,000

Pave estimates that 30% of the uncollected accounts will be uncollectible.

Estimated uncollectible = 30% x $32,000 = $9,600

The adjusting entry for uncollectible accounts on December 31, 2021:

Debit Bad debts expense $9,600

Credit Allowance for uncollectible accounts $9,600

8 0

3 years ago