1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
AfilCa [17]
3 years ago
6

Arrow 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 Arrow's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $400,000. During 2021, Arrow sold merchandise on account for $12,000,000. Also during the year, customers returned $520,000 in sales for credit, with $250,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year. The amount to adjust the refund liability to its appropriate balance at year-end would be:A. 180,000B. 220,000C. 200,000D. 240,000
Business
1 answer:
soldier1979 [14.2K]3 years ago
3 0

Answer:

C. 200,000

Explanation:

Sales return are 5% of sales meaning gross sales

therefore sales are $12million * 5% =$600,000

therefore adjustment = Closing Balance - opening balance

                                    $600,000-$400,000

                                 = $200,000

You might be interested in
Whether a deliberate choice by a leader, or ostracized by the organization, __________ are sequestered from the rest of the comp
tatiyna
The answer is D)<span> Insulating teams – (example--the scientific team that developed the atomic bomb)
</span>

While the example of the atomic bomb is a bit of stretch many companies still use such internal tactics.

For example, companies in the creative industries, Research & Development, Deep Tech and Information Technology also work through insulating teams to protect intellectual property or whatever the outcomes of the project will be.
<span></span>
5 0
4 years ago
What are the things found in a bank​
alexandr402 [8]

Sentences......

Writing.....

Poems.....

Drawing......

Cursive......

Words......

Or just a blank.....

4 0
3 years ago
Which advantage do consumers gain from buying a vehicle rather than leasing it
andre [41]
They don't have to pay as much interest.
4 0
4 years ago
Read 2 more answers
Should shoe companies be able to give away free shoes and equipment to high school athletes?
zheka24 [161]
If this is an opinion question, then my answer would be that the companies should chose where their products are distributed. This can be based off of their product availability, company income, and other factors such as how well they sell their shoes. This can affect how able they are to supply shoes without generating money back from the schools.
6 0
3 years ago
When utilizing mbo, the manager and employee jointly set objectives for the employee, the manager develops action plans, the man
dexar [7]

<span>TRUE</span>

<span>MBO is a four-step process in which (1) managers and employees jointly set objectives for the employee, (2) managers develop action plans, (3) managers and employees periodically review the employee's performance, and (4) the manager appraises and rewards the employee based on performance</span>

3 0
3 years ago
Other questions:
  • The treaty of _____ established the european economic community (eec) in 1957 and called for common external tariffs and the gra
    14·2 answers
  • Which of the following can increase your credit card's APR?
    6·2 answers
  • In Jan. 2020 Mary Jones was earning $40,000 in net income and spending $39,000 on a yearly basis. Mary Jones loses her job on Ap
    12·1 answer
  • Jeremy runs a SCUBA diving shop in Cozumel, Mexico. Jeremy has tailored his diving operation to serve serious divers preferring
    12·1 answer
  • A trust under which property is transferred by a living trustor to a trustee with instructions for management of assets and for
    15·1 answer
  • Sunland Company purchases $50,400 of raw materials on account, and it incurs $61,300 of factory labor costs. Journalize the two
    12·1 answer
  • Presented below is information for Wildhorse Co. for the month of January 2017 Cost of goods sold Freight-out Insurance expense
    12·1 answer
  • A goal is defined as the result or success toward which effort is directed.<br> O True<br> O False
    6·2 answers
  • What ways can you improve a company?
    11·1 answer
  • Federal agencies enforcing antitrust laws may ask the courts to order a company to cease its operations and liquidate all of its
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!