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aleksley [76]
4 years ago
6

Sales ReturnsWhich of the following statements is true relating to the allowance for sales returns?a. Sales returns is treated a

s an expense in the income statement and, therefore, reduces profit for the period.b. An excess of the amount by which the allowance for sales returns is increased compared with the actual returns for the period indicates the company may have inflated profit for the period.c. The amount by which the allowance for sales returns is reduced during the period is recognized as a reduction of sales for the period, thus reducing profts.d. Increasing the allowance for sales returns by an amount that is less than the actual returns recognized for the period may indicate either the company is attempting to increase profit for the period or its estimates that less of its products will be returned in the future.
Business
1 answer:
tangare [24]4 years ago
5 0

Answer:D. Increasing the allowance for sales returns by an amount that is less than the actual returns recognized for the period may indicate either the company is attempting to increase profit for the period or its estimates that less of its products will be returned in the future.

Explanation:Sale returns is a term used in Financial accounting to mean the adjustments made to the sales due to the actual return of a mechandise by a customer who has made purchase of that mechandise previously.

SALES RETURNS ARE USUALLY RECORDED IN THE "SALES RETURN AND ALLOWANCE" RECORDED IN THE INCOME STATEMENT AS A DEDUCTION.

For a successful sales return to be achieved,it must be accompanied with actual product or mechandise return and refund.

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Marie's Clothing Store had an accounts receivable balance of $ 470 comma 000 at the beginning of the year and a yearminusend bal
zimovet [89]

Answer: 59 days

Explanation: As we know that,  

Average\:collection\:period=\frac{365\:days}{Debtor\:turnover\:ratio}

And,

Debtor\:turnover\:ratio= \frac{net\:credit\:sales}{average\:debtors}

where,

average\:debtors\:=\frac{470,000+630,000}{2}

                            = $550,000

so,

Debtor\:turnover\:ratio= \frac{3,400,000}{550,000}

                                        =6.19

Now, putting the values into first formula we have :-

Average\:collection\:period=\frac{365\:days}{6.19}

                                                =  59 days

3 0
3 years ago
Read 2 more answers
Assume the lunch plate industry in Oahu, a perfectly competitive industry, is in long-run equilibrium with a market price of $5.
Wewaii [24]

Answer:

Explanation:

The lunch plate industry in Oahu is a perfectly competitive industry.  

This industry is also a decreasing cost industry. A decreasing cost industry can be defined as the type of industry where an increase in the number of firms in the industry causes the average production cost to decline.  

The industry is currently in long-run equilibrium and has the price level at $5.

As the demand increases, the price level will initially increase. But this increase in the price will cause the profits to increase and thus attract potential firms to join the market.  

As the number of firms increases the average cost of production will decrease. As a result, the supply in the market will increase more than the demand.  

So the long-run equilibrium will be reestablished at a lower price than earlier.

7 0
3 years ago
The purpose of the _____ stage of the new product development process of a company is to estimate costs and forecast sales for e
sweet [91]

Answer:

reproducing cycle

Explanation:

i did it

3 0
3 years ago
Helen and her friends want to start a new software firm. Its business plan has been finalized. Helen is in charge of the human r
sveticcg [70]

Answer:

a. Job analysis

Explanation:

Job analysis in human resources(HR) entails identifying the responsibilities , duties and functions associated with a given job role. Certain criteria such as relevant qualifications needed to perform better on the job and conditions under which the work will be performed are also part of Job analysis.

In job analysis, what is quite important is that it is the job that is assessed and not the person filling the job role whilst job analysis data may be retrieved by human resources(HR) from the person currently on the job role . Examples of areas where job analysis may be applied in an organization are in risk management, career and succession plan, recruitment and selection etc.

5 0
3 years ago
A state government reported a $9,000 increase in net position in the motor pool internal service fund, a $12,000 increase in net
Anastaziya [24]

Answer: $12,000

Explanation:

Only the $12,000 will be reported in Statement of Activities ( the financial statement used to report revenues and expenses for governmental and business-type activities) as a change in net position for business-type activities.

Why?

The Water Entreprise Fund is the only listed fund type listed that would fall under BUSINESS TYPE because it is an ENTREPRISE Fund. The Motor Pool Internal Service falls under GOVERNMENT ACTIVITIES and the Pension Find is only displayed in the Fund Financial Statements.

Because the Water Entreprise Fund is the only fund here concerned with BUSINESS TYPE activities, it's rise by $12,000 is what will be reported as the Net Change.

8 0
3 years ago
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