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Zarrin [17]
3 years ago
11

An architecture firm earned earned $1520 for architecture services provided with the fee to be paid in the future. No entry was

made at the time the service was provided. If the fee has not been paid by the end of the accounting period and no adjusting entry is made, this would cause:
Business
1 answer:
GaryK [48]3 years ago
8 0

Answer:

Revenue is understated by $1520

Profit is understated by $1520

Accounts receivable is understated by $1520

Retained earnings is understated by $1520

Explanation:

The guideline on recognition of revenue is accrual basis of accounting, which is that revenue is recognized when it has been earned, in other words when the business has discharged its obligation to the other party by a way of delivering goods or services to clients.

Specifically,by not recording an adjusting for the $1520 revenue earned but not yet received,the revenue for the period would be understated by $1520 as well as profit for the year.

Also,asset,accounts receivable would also be understated by $1520 including retained earnings at the end of the year

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micro-merchandising

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In this type of practice , the needs and demands of the consumer is the main focus of this merchandising .

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The correct answer is micro-merchandising .

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3 years ago
What are goods?
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3 0
3 years ago
At the beginning of Year 2, the Redd Company had the following balances in its accounts:
bixtya [17]

Answer:

Redd Company

Journal Entries:

1. Debit Inventory $13,100

Credit Accounts payable (Ross Company) $13,100

To record the purchase of inventory on account, terms 2/10, n/30.

2. Debit Freight-in Expense $990

Credit Cash $990

To record the payment for freight.

3. Debit Accounts payable (Ross Company) $900

Credit Inventory $900

To record the return of goods to supplier.

4. Debit Accounts payable (Ross Company) $12,200

Credit Cash $11,956

Credit Cash Discounts $244

To record the payment on account.

5. Debit Accounts receivable $21,500

Credit Sales Revenue $21,500

To record the sale of goods on account, terms 2/10, n/45

Debit Cost of goods sold $12,500

Credit Inventory $12,500

To record the cost of goods sold.

6. Debit Sales Returns $3,000

Credit Cash $3,000

To record the payment of cash for returned goods.

Debit Inventory $2,150

Credit Cost of goods sold $2,150

To record the cost of goods returned.

7. Debit Freight-out Expense $880

Credit Cash $880

To record the payment of freight.

8. Debit Cash $18,130

Debit Cash Discounts $370

Credit Accounts Receivable $18,500

To record the receipt of cash on account.

9. Debit Cash $7,300

Credit Land $7,300

To record the sale of land for cash.

10. Debit Interest Receivable $650

Credit Interest Revenue $650

To accrue interest income.

11. Debit Cost of goods sold $5,750

Credit Inventory $5,750

To record the cost of inventory write down.

Explanation:

a) Data and Analysis:

1. Inventory $13,100 Accounts payable (Ross Company) $13,100, terms 2/10, n/30.

2. Freight-in Expense $990 Cash $990

3. Accounts payable (Ross Company) $900 Inventory $900

4. Accounts payable (Ross Company) $12,200 Cash $11,956 Cash Discounts $244

5. Accounts receivable $21,500 Sales Revenue $21,500, terms 2/10, n/45

  Cost of goods sold $12,500 Inventory $12,500

6. Sales Returns $3,000 Cash $3,000

  Inventory $2,150 Cost of goods sold $2,150

7. Freight-out Expense $880 Cash $880

8. Cash $18,130 Cash Discounts $370 Accounts Receivable $18,500

9. Cash $7,300 Land $7,300

10. Interest Receivable $650 Interest Revenue $650

11. Cost of goods sold $5,750 Inventory $5,750

Inventory write down:

Beginning     $9,000

Purchase        13,100

Return              (900)

Sold             (12,500)

Return            2,150

Net             $10,850

Ending            5,100

Write down $5,750

3 0
3 years ago
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