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Ivan
4 years ago
13

Carla Vista Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sale

s returns period extends 60 days. On February 10, 2021, a customer purchases $3500 of products (cost $1750). Assuming that based on prior experience, estimated returns are 20%. The journal entry to record the actual return of $200 of merchandise includes a:______
Business
1 answer:
vazorg [7]4 years ago
4 0

Answer:

debit to Returned Inventory for $100

Explanation:

The Journal entry is following below:

1. Sales Returns & Allowance Dr, $200

      To Account Receivable $200

(Being sales return is recorded)

Here, we debited the sales return and allowances as it is return and we credited the accounts receivable as it reduces the assets.

2. Returned Inventory Dr, $100

      To Cost of Goods Sold $100

(Being returned Inventory is recorded)

Here, we debited the returned inventory as it is return while we credited the cost of goods sold as the expenses is reduced.

Working note

Returned inventory = Actual return × Cost ÷ Customer purchase

= $200 × $1,750 ÷ $3,500

= $200 × 0.5

= $100

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Black Corporation declared $50,000 cash dividends to shareholders. The coporation has 4,000 shares of $25-par, 5% preferred stoc
Liono4ka [1.6K]

Answer:

$5,000 will be distributed to preferred stockholders and $45,000 will be distributed among common stockholders.

Explanation:

The accrued dividend on preferred stock based on predetermined rate or amount is known as preferred stock dividend. Preferred stock has priority over common stockholders, It means that dividend will be given to preferred stockholder first.

Preferred stock dividend = 4,000 shares x $25 x 5% = $5,000

Common stock dividend = $50,000 - $5,000 = $45,000

6 0
4 years ago
GAAP stresses the importance of obtaining consent when collecting, using, and sharing informaton about customers. if a company's
Sophie [7]

Answer:

Explicit consent.

Explanation:

Explicit consent then means that the data subject must give an express statement of consent, for instance in a written statement.

4 0
3 years ago
When performing capital budgeting, __________ incurred by a project are irrelevant to future investment decisions.
m_a_m_a [10]

Question:

When performing capital budgeting, __________ incurred by a project are irrelevant to future investment decisions.

A) Opportunity costs

B) Depreciation

C) Sunk costs

D) Taxes

Answer:

The correct answer is C) Sunk Costs      

Explanation:

Capital Budgeting is the art (most applicable to corporate persons) of planning expenditure that will be incurred in the future, especially on long term assets.

The reason you cannot factor Sunk Cost into a Capital Budget is because of  its very nature.

Sunk Costs refer to monies for items that have already been expended and can never be recovered. If it can never be recovered and has <u>already</u>  been incurred, it has no role to play in future considerations especially when the purpose of Capital Budgetting is considered.

The primary purpose of a Capital Budget is that it helps to further evaluate the inflow against the outflow of an investment to check whether or not the return is acceptable.

Every other option given in the question above are items that have futuristic qualities.

Cheers

6 0
3 years ago
A benevolent social planner would prefer that the output of good x be decreased from its current level if, at the current level
Orlov [11]

Answer:

c

Explanation:

social value = private value = private cost < social cost.

6 0
3 years ago
What are work content skills?
Delicious77 [7]

Employers typically need workers with both content skills and transferable skills to fill given positions. Content skills, also known as technical, job-specific or vocational skills, include those that relate specifically to your line of work. Transferable skills are those which you can use in a variety of occupations.

6 0
3 years ago
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