Incomplete question. The options;
a. The FASB has small membership.
b. The FASB board members are well paid.
c. The FASB board members must be CPAs.
d. The FASB engages in due process.
Answer:
<u>d. The FASB engages in due process.</u>
Explanation:
Interestingly, the FASB (Financial Accounting Standards Board) issued standards involve more due process than previously issued standards.
For example, the board on a federal level provides detailed guidelines on how non-profits organizations, public companies, and private companies should report their financial information. By visiting the FASB website, we can find it's due process information.
Answer:
a. Dr Sales $619,200
Cr Customer Refunds Payable $619,200
b. Dr Estimated Returns Inventory $400,000
Cr Cost of Merchandise Sold $400,000
Explanation:
a. Preparation of the journal entry to record Estimated customer refunds and allowances
Dr Sales $619,200
($51,600,000 × 1.2%)
Cr Customer Refunds Payable $619,200
(To record Estimated customer refunds and allowances )
b. Preparation of the journal entry to Estimated customer returns
Dr Estimated Returns Inventory $400,000
Cr Cost of Merchandise Sold $400,000
(To record Estimated customer returns)
Answer:
Technological advancement
Explanation:
Technological advancement is a method that is used to make production process more efficient without increasing the labour that is used.
It involves the use of technology to increase efficiency of the production process.
This makes it possible for SmartTech to produce more product and services with less people.
They are investing more in technology than in human labour.
Answer:
debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.
Explanation:
In accounting the allowance method is used to recognise and post portions of account recievable that is uncollectible. It involves an adjusting entry that changes the balance sheet figure for account receivable.
For example in the given instance a customer balance of $200, from Hollis Co., is uncollectible. The allowance method is used to pass the following entry:
debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable of $200