Well this may not be me answering it but this guy is a lot of help tho
Answer:
It should raise up to 56 percent of taxes
Explanation:
Answer:
C. Estimated warranty payable for $26,500.
Explanation:
The monthly sales are $530,000 and the warranty costs are 5% of monthly sales,
Therefore, Warranty costs will be = $530,000*5% = $26,500.
Now, we know that no defective products were returned during the current month, hence the other options in the questions are discarded and Estimated warranty payable is taken at the month end.
Thank buddy.
Good luck and Cheers.
Answer: b. Luncheon is served.
Explanation:
The Accrual Basis in Accounting requires that Revenues are recorded when they are earned as well as Expenses being recorded when incurred. Revenue is not to be recorded when the services have been paid for when when an order has been made. They are to be recorded when the service has been fulfilled or the goods delivered.
In the above case, ABC is a caterer and their main business is to serve business luncheons for large corporations.
This means that their service is done when they serve these luncheons. This should be when the revenue should be recognized then because this is when their service was delivered.
