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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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If a company adds 60 new workstations at a cost of $100,000 each and also spends $20 million for addition in its camera/drone as
vredina [299]

Answer:

$1,300,000

Explanation:

Given:

Number of workstation = 60

Cost of each workstation = $100,000

Additional Cost = 20,000,000

Computation of total cost:

= Total work station cost + Additional cost

= ($100,000 x 60) + $20,000,000

= $6,000,000 + $20,000,000

= $26,000,000

Assume Depreciation rate = 5%

Deprecation = Total Cost x Depreciation rate

= $26,000,000 x 5%

= $1,300,000

5 0
3 years ago
Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $800 account of a customer,
saul85 [17]

Answer:

Explanation:

The journal entries are shown below:

On January 31

Allowance for doubtful accounts A/c Dr $800

         To Account receivable A/c $800

(Being the written off amount is recorded)

On January 31

Account receivable A/c Dr $300

           To Allowance for doubtful accounts A/c $300

(Being the reverse entry is made)

On March 9

Cash A/c Dr $300

      To Accounts receivable A/c $300

(Being the amount is collected)

7 0
3 years ago
On December 31, 2020, McDaniel Company had $1,200,000 of short-term debt in the form of notes payable due February 2, 2021. On J
o-na [289]

Answer and Explanation:

The preparation is presented below:

<u>                                                  McDaniel Company </u>

<u>                                                  Partial balance sheet</u>

Particulars                                      Amount

Current liabilities

Note payable                                 $250,000

Long term debt

Note payable refinance                $950,000

Total liabilities                                $1,200,000

We simply added the long term debt and the current liabilities so that the total liabilities could come

8 0
3 years ago
What is a good website tutorial about 401k plans for participants<br> ?
Mademuasel [1]
 try this one outhttps://www.irs.gov/retirement-plans/401k-plans
5 0
3 years ago
Read 2 more answers
Spencer Tools would like to offer a special product to its best customers. However, the firm wants to limit its maximum potentia
pochemuha

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

6 0
3 years ago
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