Answer:
a. Journalize the adjusting entry for the estimated customer allowances.
- Dr Sales returns and allowances 10,500
- Cr Customer refunds payable 10,500
The adjusting entry should = total sales x estimated percent of returns = $1,750,000 x 0.6% = $10,500
b. Journalize the adjusting entry for the estimated customer returns.
- Dr Estimated returns inventory 8,000
- Cr Cost of merchandise sold 8,000
This amount is given in the question, $8,000, so you need to record it as a decrease in COGS and an increase in returns inventory.
In order to compute for the effective annual rate, the
working equation would be [( 1 + i/n)^n] – 1. The i
corresponds to the nominal rate while n is the number of compounding periods
per year which in this case is 12. The answer would be 5.116%.
Answer:
a. 19.750 b. 138.250
Explanation:
A. We divide 158.000 by 8 to get the amount per year
158.000/8= 19.750
- Amortization expense (Db) 19.750
- Accumulated amortization (Cr) 19.750
B. On the balance sheet at the end of the first year, we would subtract those 19.750 to the gross value of the patent and the value of the patent would be
158.000 - 19.750 = 138.250
<u><em>Net carrying amount of the patent:</em></u><em> 138.250</em>
Answer:
Transaction gain = $16 million
Explanation:
Given:
Purchase amount = $52 million
December 31, 2021, bonds value = $46 million
October 3, 2022, bonds sold = $62 billion
Computation:
Using multi-step approach
Transaction gain = October 3, 2022, bonds sold - December 31, 2021, bonds value
Transaction gain = $62 million - $46 million
Transaction gain = $16 million
