The business risk which is avoidable if there is proper
precaution is letter A. Machine Breakdown. Comparing to other choices, if a
machine is used with absolute care and it is well-maintained, then possible frequent
breakdowns will be avoided. Unlike the obsolescence of fixed machinery; this means
that some fixed assets are becoming outdated and can wear-out in due time which
becomes a risk that is unavoidable. Natural calamities, on the other hand are
inevitable because humans can predict some natural disasters, but cannot
control the extent of damage caused by certain calamities to the business. Last
but not the least, is the change in management. Despite the fact that each and
everyone in the company is doing their job very well, still, those higher in
authority may choose to retire or transfer to another company.
Sales Returned and Allowances $50
Allowance for Sales Return and Allowances $50
Lavender expects 5 jars at $10 each ($50 total) to be returned.
Explanation:
Lavender Corporation sells 100 jars of essential oil to Bed, Bath, and Relax on December 1, 20X5, for $10 each. Lavender offers a right to return the product for any reason. Based on past sales, Lavender expects Bed, Bath, and Relax to return 5 jars
<u>Using the above stated information we get the given data :-</u>
Sales Returned and Allowances $50
Allowance for Sales Return and Allowances $50
Lavender expects 5 jars at $10 each ($50 total) to be returned.
<u>The adjusting journal entry on December 31 reflects</u>
- The right of return by debiting Sales Returns and Allowances (a contra-revenue account) and
- Crediting Allowance for Sales Returns and Allowances (a contra-asset account to Accounts Receivable).
Answer:
The answer is: Compensatory damages
Explanation:
Compensatory damages refers to money awarded to a plaintiff in a civil case (in this case Cooper's Brakes) to compensate for incurred losses (or injuries, etc. in other cases). The plaintiff has to prove that the losses he suffered were caused by negligence or unlawful conduct of the defendant (Byron's Service). The plaintiff has to be able to quantify (in monetary terms) the damages it suffered.
