Answer:
debit to Sales allowance of $50
Explanation:
When some defect in a product is revealed or notified by the buyer, the seller usually grants the customer an allowance which is termed as sales allowance.
It is usually allowed when the customer agrees to keep the product instead of returning the defective product which would constitute sales returns.
Following journal entry is recorded for recording sales allowance
Sales Allowance A/C Dr. $ 50
To Accounts Receivable $50
(Being allowance for defects recorded)
Sales allowance is deducted from gross sales before the customer makes payment.
Answer:
Option A Risks affecting the business operations and potential outcomes of an organization's activities.
Explanation:
The reason is that the business risk are those risks that has potential to increase the cost of the company or decrease the revenue of the organization. So here the misstatement will not increase the cost of the organization and the only risk that increase the cost or decrease the revenues is the poor performance of the organization's activities and operations. So the right option which doesn't talks about misstatements is option A.
Answer:
A) Prepare the revenues section of the income statement.
Lopez Company
Income Statement for the year ended MM DD, YY
Sales Revenue $852,850
-Sales Returns and Allowances $24,030
-Sales Discounts <u> $12,760 </u>
= Net Sales <u>$816,060</u>
B) Prepare separate closing entries for
(1) sales
Dr. Cr.
Sales $852,850
Income Summary $852,850
(2) the contra accounts to sales.
Dr. Cr.
Income Summary $36,736
Sales Returns and Allowances $24,030
Sales Discount $12,706
Answer: banks statements and break down of property structures.
