These two Sales Revenue accounts (the sales returns and sales allowances) are classified as <em>Contra accounts.</em> They have debit balances unlike the Sales Revenue account.
- The purpose of their creation is to maintain the Sales Revenue account at its gross amount for measure purposes.
- The Sales Returns account is the General Ledger account for recording goods returned by customers. It reduces the Accounts Receivable account, which is credited with Sales Returns.
- The Sales Allowances account records allowances granted to customers for defective goods, which reduce their balances.
Thus, the two sales accounts are contra accounts and they have debit balances.
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A specific group of related businesses is known as a *chain.
A. we know it is not c or d cuz they would not fit but a and b are our options the answer would be B IF he was a worker but in this case he makes his money from a profit and pays the workers (they earned it) so it is A
As of 2011, the world's population has reached 7 billion. The annual population growth rate is 1.2%, thereby there would be an additional 1 billion population growth at approximately 11 years or by 2021 the population would be 8 billion.
Answer:
Explanation:
In this scenario, we compare the values between book value and the fair value of equipment, the difference would be the loss on impairment of the asset
In mathematically,
= Book value - fair value
where,
Book value = Equipment cost - accumulated depreciation
= $672,000 - $174,000
= $498,000
And, the fair value is $384,000
Now put these values to the above formula
So, the value would equal to
= $498,000 - $384,00
= $114,000
Now the journal entry would be
Loss on impairment A/c Dr $114,000
To Accumulated depreciation A/c $114,000
(Being the impairment loss is recorded)
