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weeeeeb [17]
3 years ago
9

After making a sale, a seller may have customers that return goods. The seller uses the perpetual inventory system. This require

s the seller to _____.
A. reduce sales and cost of goods sold for the period
B. use historical data to record sales revenue in the amount that is expected to be received
C. record two adjusting entries to account for the estimated returns
D. All of the statements are correct.
Business
1 answer:
anyanavicka [17]3 years ago
7 0

Answer:

D. All of the statements are correct.

Explanation:

The Seller requires to

Reduce its sales by the estimated return value and cost of goods sold by the estimated cost value of the units expected to return in the future.

Use historical data of sales and returns and calculate the value of expected return items.

After the estimation of values record the adjusting transaction for the estimated return liability and the inventory to be returna as well.

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3 years ago
One Friday afternoon, Rose Marie went to her mailbox and found two envelopes addressed to her. One envelope contained a check fo
ipn [44]

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Rose Marie received $152 in earned income and $25 in transfer payments.

Explanation:

Based on the information provided within the question it can be said that in this scenario Rose Marie received $152 in earned income and $25 in transfer payments. The $152 from her "side hustle" is basically from a service that she provided, which she worked (earned) for. Since the other payment was given to her from her grandmother, it is said to have transferred ownership, thus it is a transfer payment.

6 0
3 years ago
Harvey Hotels has provided a defined benefit pension plan for its employees for several years. At the end of the most recent yea
svp [43]

Answer:

Answer ; Pension Expenses : $7.5million

Explanation:

Calculation of amount that Harvey Hotels report as pension expense in its income statement for the year -

Particulars                                                       Explanation      Amount

Service cost                                            Given in the question     $6.2 million

Add: Interest cost                                    Given in the question     $1.4 million

Less: Expected return on plan assets    Given in the question     $1.2 million

Add: Amortization of prior service cost  Given in the question     $1.1 million

Pension Expense                              ($6.2+$1.4-$1.2+$1.1)million     $7.5 million

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