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s344n2d4d5 [400]
3 years ago
5

During 2021, its first year of operations, Ashbaugh Industries recorded sales of $21,000,000 and experienced returns of $1,400,0

00. Returns are accounted for as they occur, with additional estimated returns accrued at the end of the period. Cost of goods sold totaled $12,600,000,000 (60% of sales). The company estimates that 8% of all sales will be returned. The year-end adjusting journal entry to account for anticipated sales returns would include a:
A) Credit to sales returns of $280,000.
B) Credit to refund liability of $280,000.
C) Debit to sales returns of $1,680,000.
D) Debit to cost of sales of $168,000.
Business
1 answer:
juin [17]3 years ago
3 0

Answer:

B) Credit to refund liability of $280,000

Explanation:

The total estimated returns are 85 of the total sales = 8% x $21,000,000 = $1,680,000.

Since the company had already accounted for $1,400,000 in returns, the adjusted necessary should be = total returns - accounted returns = $1,680,000 - $1,400,000 = $280,000

Since the refund liability account must increase, and it is a liability account, it should be credited.

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4 0
3 years ago
A monopoly industry:A. has very significant barriers to entry. B. faces a downward sloping demand curve. C. produces a product f
Kryger [21]

Answer:

The correct answer is option E.

Explanation:

A monopoly is a market where there is only single producer or seller. There are restrictions on entry in the market. The firms in the monopoly are price makers. That is why they have a downward sloping demand curve.

There are no close substitutes for the product and there is only one seller in the monopoly.

The firm may earn profit or loss or profits in the short run based on its revenue and cost conditions.

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Peavey enterprises purchased a depreciable asset for $28,500 on april 1, year 1. the asset will be depreciated using the straigh
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4 0
3 years ago
Imagine that you are serving as the general manager of a hotel. What three aspects do you think would be most important to the s
Strike441 [17]

Answer:

1. Create and give innovative experience.

2. Brand and reputation operation

3. Improvement in workers general welfare

Explanation:

As a manager in an hotel, I would Improve the facets of the hotel by

1. Create and give innovative experience. As a manager, I would ensure the hotel create and delivers top notch service considering there are competition in the hospitality industry.

2. Brand and reputation operation. When customers receives a world class experience, reputation is being created here. I would then sustain this reputation by making it a brand upon which the hotel will be identified with subsequently.

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8 0
3 years ago
The following amounts were selected from the production report of Chandon Corporation: Actual units in production 42,000 Equival
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Answer:

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So option (c) will be correct answer.

Explanation:

Actual unit of production = 42000

Cost of per equivalent material = $1.10

Equivalent cost of material = =42000\times1.1=46200$

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Therefore total cost of production = $46200+$35100 = $81300

So total cost will be $81300

Therefore option (c) is the correct answer

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