Answer:
$607,000
Explanation:
False Value Hardware began 2016 with a credit balance of $32,000 in the allowance for sales returns account.
Sales and cash collections from customers during the year were $650,000 and $610,000, respectively.
False Value estimates that 6% of all sales will be returned.
During 2016, customers returned merchandise for credit of $28,000 to their accounts.
False Value's 2016 income statement would report net sales of:
The closing balance in the allowance for sales returns account will be: 32,000 opening balance + 6% 0f 650,000 - sales returns within the year of 28,000 = $43,000
Hence Net Sales will be 650,000 - 43,000 = $607,000
Answer:
b. 3,249 units
Explanation:
Step 1. Given information.
Fix costs are 32.000
Depreciation expense 9.700
Contribution margin 9.85
Step 2. Formulas needed to solve the exercise.
Break even point = Fixed cost / contribution per unit
Step 3. Calculation.
Break even point= $32.000/$9.85= 3,248.73 rounded to 3,249
Step 4. Solution.
3.249 units is the minimum number of units to ensure its potential loss does not exceed the desired level
Option B is correct i.e. 3.249 units
<span>The following properties can be classified as those associated with metal elements: having a high density, malleable, and having low melting points.
The following properties can be classified as those associated with non-metal elements: dull and nonreactive to acids.</span>
Answer:
B. Debit Budgetary Fund Balance -- Reserve for Encumbrances for $550,000.
Explanation:
X City made an order for goods worth $550,000 and when the goods were received the invoice states $551,000. The company should indicate in the invoice the correct amount received and work with that.
Reserve for encumbrances is an account that contains funds that have been reserved for a particular purpose. In this case since the order was made in February, the funds of $550,000 would have been put in this account.
On receipt of the goods we debit Budgetary Fund Balance -- Reserve for Encumbrances for $550,000 (the correct value of goods received).
Answer:
The corporation tax of company for interim financial reporting must be determined using previous quarter corporation tax amount minus previous quarter tax surplus or plus previous quarter tax deficit.
Explanation:
This is one of the way we estimate the corporation tax which helps in the better estimation. This way of estimating the corporation tax is recommended methods by the International Accounting Standard IAS 12 Taxes, for estimating taxes for interim and yearly financial reporting.
