Answer:
Accounting treatment (debit credit rules) of given entries
Explanation:
- Purchased office furniture on account Account
Furniture ie Asset increase - Debit , Creditor (Furniture Supplier) ie Liability increase - Credit
- Provided services on account
Debtor ie Asset increase - Debit , Sale ie Income increase - Credit
Prepaid Expense (Rent) ie Asset Increase - Debit. Rent paid now implies later rent ie (Expense) decrease - Credit
Answer:
1.89%
Explanation:
The book value of the merchandise is $178,000
Physical inventory reveals stock is worth $169,000
The shrinkage = $178,000 - $169,000
=$9000
As a percentage of sales, the shrinkage will be
=$9000/$476,000 x 100
=0.0189076 x 100
=1.89%
Answer:
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 $330,000. During 2021, Halifax sold merchandise on account for $11,800,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $345,000 in sales for credit, with $191,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year.
Explanation:
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 $330,000. During 2021, Halifax sold merchandise on account for $11,800,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $345,000 in sales for credit, with $191,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year.
Answer:
a. Counterclaim
Explanation:
Counterclaim is a claim by a defendant (the person be sued) against the plaintiff (the person who sues first).
Lyn is the plaintiff, who first sued Karl (the defendant). Karl's claim against the original plaintiff (Lyn) is an example of a counterclaim.
Another example is counterclaim by the city of Sandy Springs against Holder Construction Group, the company that built the city of Sandy Springs’ new City Springs complex.
Holder Construction Group earlier sued Sandy Springs city over disagreements on payments for the work.
The city filed a counterclaim to a superior Court, claiming that Holder Group should be denied payments until all work is done and for breach of contract, negligent construction and fraud.
