Answer:
Journal Entries:
1. Debit Sales Returns & Allowance $1,040
Credit Accounts Receivable $1,040
To record the estimated cost of returns.
2. Debit Inventory $333
Credit Cost of goods sold $333
To record the estimated cost of the goods returned.
Explanation:
a) Data and Analysis:
1. Sales returns and Allowances $1,040 Accounts receivable $1,040
2. Inventory $333 Cost of goods sold $333
The first journal entry records the estimated returns to be made by the customers by debiting the Sales returns account (a contra account to the sales revenue account). The corresponding credit entry in the Accounts receivable shows that a part of the accounts has been cancelled as a result of the estimated sales returns.
The second journal entry records the estimated cost of the goods to be returned by debiting the Inventory account and crediting the Cost of goods sold account. This cancels earlier records.
Answer:
$12,400
Explanation:
The computation of the total Manufacturing Overhead is shown below:
= Glue for frames + Plant depreciation + plant foreman's salary + plant janitors wages + Oil for manufacturing equipment
= $350 + $6,000 + $4,500 + $1,400 + $150
= $12,400
This cost is always reported only indirect cost with respect to the factory or production overhead cost
Answer:
c. Audit firm name
Explanation:
Audit documentation is evidence for the work performed and conclusions drawn in an audit. it also provides a basis with which all future audits can be performed.
the important constituents of the heading of a workpaper:
1. client name
2. client balance sheet dat
3. a descriptive explanatory title.
Therefore, The item that would typically not be included in the heading of a workpaper is Audit firm name
All of the benefits for <em>non-personal injury</em> cases must be reported as gross income for tax purposes. Since defamation isn't a personal injury claim, all of the award must be reported and is subject to taxation.
