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Umnica [9.8K]
3 years ago
11

On March 18, James Smith purchased $5,000 of furniture from Home Furnishings on account. The cost of the goods was $3,000. On Ma

rch 20, Home Fu goods damaged in transit. Which of the following represents the correct way to record this tr rnishings granted the customer a $1,000 sales allowance for 1?
A. Refunds Payable 1,000 Cash 600 Merchandise Inventory 600 Estimated Returns Inventory 1,000
B. Refunds Payable O Accounts Receivable 1,000 1000
C. Sales Revenue O Cash 1,000
D. Sales Returns and Allowances1,000 Cash 1,000
Business
1 answer:
UNO [17]3 years ago
5 0

Answer:

B. Refunds Payable  1,000  Accounts Receivable 1000

Explanation:

Since the given transactions made on credit basis, so there is no role of cash.

Hence, no cash entry would be recorded

Moreover, the sales allowance is granted for $1,000 which reduce the account receive balance so we credited this account and the goods are damaged so we debited the refund payable account

Hence, the entry would be

Refunds Payable  $1,000

              Accounts Receivable $1,000

(Being the sales allowance is recorded)

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Answer:

The answer is T that is  (True)

Explanation:

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The internal controls in advanced accounting can either be preventative, consequentially deterring fraud and mistakes, or detective, consequentially identifying challenges after they have occurred

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3 years ago
Which of the following is the best description of organizational culture?
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Answer: The correct answer is "E. A system of shared values about what is important and beliefs about how the world works".

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3 years ago
How much would a homeowner receive with actualâ cash-value coverage and replacement cost coverage for aâ three-year old sofa des
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We can calculate the actual cost value by first multiplying the purchase value by the depreciation rate and after that deducting that amount from the replacement cost.

DATA

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Purchase value = $942

Depreciation rate  = 3 years/6 years = 0.5

Solution

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Acutal cost value = $1200 - ($942 x 0.5)

Acutal cost value = $729

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Answer:

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Explanation:

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4 years ago
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