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inysia [295]
4 years ago
8

Holly uses a perpetual inventory system. Holly sells $3,500 of blue jeans. The customer later brings $420 of blue jeans back to

Holly because they are defective. Those blue jeans had a cost of $140. The customer agrees to keep the blue jeans and Holly agrees to a $140 allowance. Which of the following is one of the entries that Holly will use to record the return?
A. Debit Cash for $140 and credit Inventory for $140.B. Debit Inventory for $140 and credit Cash for $140.C. Debit Cash for $140 and credit Sales Revenue for $140.D. Debit Sales Revenue for $140 and credit Cash for $140.
Business
1 answer:
oksian1 [2.3K]4 years ago
8 0

Answer:

D. Debit Sales Revenue for $140 and credit Cash for $140.

Explanation:

The journal entry to record the sale:

Dr Cash 3,500

    Cr Sales revenue 3,500

Dr Cost of goods sold XY

    Cr Merchandise inventory XY

The journal entry to record the allowance for the defective merchandise:

Dr Sales revenue (or sales returns and allowances) 140

    Cr Cash 140

Sales returns and allowances account is a contra revenue account that decreases sales revenue. In this case, the company uses only sales revenue account which is reduced by debiting it.

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Explanation:

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This element must be in a shape of a square set at a point and include a black hazard symbol on a white background with a red fr
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A hazard pictogram is being referenced. It must meet these requirements in order to deliver a clear, warning message.
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3 years ago
Diehl Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following d
photoshop1234 [79]

Answer:

 $84,000

Explanation:

The computation is shown below:

Particulars                      Order Size Customer support  Other Total

Manufacturing overhead   $24,000   $408,000                $48,000               480000

Selling and administrative

expenses                      $60,000 $20,000                        $20,000        $100,000

Total                              $84,000 $428,000                $68,000 $580,000

The allocation of manufacturing overhead is done in 5% 85% 10% 100%

The allocation of selling and administrative expense is done is 60% 20% 20% 100%

4 0
3 years ago
Pei's savings account balance is $12,000 today. Pei opened the account exactly 7 years ago with a $10,000 deposit. Pei has made
koban [17]

Answer:

2.64%

Explanation:

A = P(1 + r)^n

A = $12,000

P = $10,000

n = 7 years

12,000 = 10,000(1 + r)^7

(1 + r)^7 = 12,000/10,000 = 1.2

(1 + r)^7 = 1.2

1 + r = (1.2)^1/7

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r = 0.0264 × 100 = 2.64%

5 0
3 years ago
Simple Interest:
Naddik [55]

Option answer:

c. Interest = $54 and Balance = $1254

Answer:

A = $1,254.00

I = A - P = $54.00

Equation:

A = P(1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 3%/100 = 0.03 per year.

Solving our equation:

A = 1200(1 + (0.03 × 1.5)) = 1254

A = $1,254.00

The total amount accrued, principal plus interest, from simple interest on a principal of $1,200.00 at a rate of 3% per year for 1.5 years is $1,254.00.

6 0
2 years ago
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