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miv72 [106K]
3 years ago
10

Scott Company had sales of $12,050,000 and related cost of goods sold of $7,100,000 for the year ending December 31, 20Y8. Scott

provides customers a refund for any returned or damaged merchandise. Scott Company estimates that customers will request refunds for 0.6% of sales and estimates that merchandise costing $53,000 will be returned in 20Y9. Journalize the adjusting entries on December 31, 20Y8, to record the expected customer returns. If an amount box does not require an entry, leave it blank.
Business
1 answer:
yaroslaw [1]3 years ago
3 0

Answer:

See explanation section.

Explanation:

December 31, 20Y8          Sales                Debit                     $72,300

                                      Customer Refunds Payable     Credit                $72,300

Note: Calculation: $12,050,000 × 0.6% = $72,300

(As the customers requested refunds for 0.6% of sales, we have to deduct it from total sales to give refund.)

December 31, 20Y8           Estimated Returns Inventory Debit  $53,000

                                            Cost of goods sold      Credit                   $53,000

Note: As the returned products had the cost of sales, we have to give cost of goods sold journal assuming the company used perpetual inventory system.                              

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Some economists believe that a sales tax increase affects which group the MOST?
VladimirAG [237]

Answer:

the lower class

Explanation:

they will lose money for necessities

5 0
3 years ago
Room and Board has determined that $41,650 is the break-even level of earnings before interest and taxes for the two capital str
ipn [44]

Answer:

Interest rate on debt is 12.40%

Explanation:

Since break-even EBIT $41,650 , the equation of the two capital structure can be written as below:

EPS under the first capital structure=EPS under the second capital structure

Generally EPS =EBIT/weighted average number of shares in an all equity financed structure like the first one

EPS=EBIT-(debt*interest rate)/weighted average number of shares in a mixed capital structure

$41,650/15,500=$41,650-($65000*interest rate)/12,500

by cross multiplication

41,650/15,500*12,500=41650-(65000*interest rate)

33588.71=41650-(65000*interest rate)

65000*interest rate=41650-33588.71

interest rate=(41650-33588.71)/65000

interest rate=12.40%

6 0
3 years ago
The last line in a business letter is the _______.<br><br> Help please
Kaylis [27]

Answer:

Salutation

Explanation:

7 0
3 years ago
A company had net cash flows from operations of $341,000, net income of $286,000 and average total assets of $1,850,000. The cas
KatRina [158]

Answer: 18.43%

Explanation:

Based on the information given, the cash flow on total assets ratio will be calculated as:

= (net cash flows from operations / average total asset) × 100

= ($341,000 / $1850000) × 100

= 18.43%

Therefore, the answer to the question is 18.43%

8 0
3 years ago
Two roadway designs are under consideration for access to a permanent suspension bridge. Design 1A will cost $1.7 million to bui
Vladimir79 [104]

Answer and Explanation:

A. Given that Design 1A will cost $1.7 million to build and $175,000 per year to maintain

Given that Design 1B will cost $3.6 million to build and $40,000 per year to maintain

Both designs are assumed to be permanent

To find ROR using AW based rate of return equation, we find present value of each design and equate them:

Each design is permanent so

Present value of perpetuity:

Design 1A= 1700000+175000/r

Design 1B = 3600000+40000/r

=1700000+175000/r=3600000+40000/r

135000/r=1900000

Cross multiply

r=135000/1900000

r= 0.0710

r=7.10%

B Given that ROR=7.10% and MARR is 25%

MARR>ROR

Hence we reject both designs

5 0
3 years ago
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