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AnnyKZ [126]
3 years ago
11

Statz Company had sales of $1,800,000 and related cost of goods sold of $1,150,000 for its first year of operations ending Decem

ber 31, 20Y1. Statz provides customers a refund for any returned or damaged merchandise. At the end of 20Y1, Statz Company estimates that customers will request refunds for 1.5% of sales and estimates that merchandise costing $16,000 will be returned. Assume that on February 3, 20Y2, Buck Co. returned merchandise with an invoice amount of $5,000 for a cash refund. The returned merchandise originally cost Statz Company $3,100.
(a) Journalize the adjusting entries on December 31, 20Y1, to record the expected customer returns.
(b) Journalize the entries to record the returned merchandise and cash refund to Buck Co. on February 3, 20Y2.
Business
1 answer:
Mrrafil [7]3 years ago
6 0

Answer:

A. Dec 31

Dr Sales $27,000

Cr Customer refunds payable $27,000

Dr Estimated returns inventory $16,000

Cr Cost of goods sold $16,000

B. Feb 3

Dr Customer refunds payable $5,000

Cr Cash $5,000

Dr Merchandise Inventory $3,100

Cr Estimated returns inventory $3,100

Explanation:

(a) Preparation of the adjusting entries on December 31, 20Y1, to record the expected customer returns.

Dec 31

Dr Sales $27,000

Cr Customer refunds payable $27,000

($1,800,000*1.5% )

Dr Estimated returns inventory $16,000

Cr Cost of goods sold $16,000

(b) Preparation of the entries to record the returned merchandise and cash refund to Buck Co. on February 3, 20Y2.

Feb 3

Dr Customer refunds payable $5,000

Cr Cash $5,000

Dr Merchandise Inventory $3,100

Cr Estimated returns inventory $3,100

.

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Answer:

                                Quik Furniture Company

              Production cost report - Sanding department

                         Month ended on March 31, 2020

Units                           Physical units                   Equivalent units

                                                                Materials                 Conversion          

Units started                    9,240

<u>in production                                                                                              </u>

Completed and               6,240

transferred out

<u>Work in progress                                       3,000                          600      </u>

Total units                       6,240                 3,000                          600

accounted for

Costs                                          Direct               Conversion       Total

                                                   materials          costs

Beginning WIP                              $0                     $0                     $0

Costs added during                  $36,960           $51,642            $88,602

<u>period                                                                                                           </u>

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Cost per unit                                  $4                  $7.55                 $11.55

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5 0
3 years ago
Suppose the National Bureau of Economic Research (NBER) comes out with a report suggesting that the economy will soon dip into r
egoroff_w [7]

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<u>Explanation:</u>

In Economics, a recession is a business cycle constriction when there is a general decrease in monetary action. Downturns by and large happen when there is a far reaching drop in spending.

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6 0
2 years ago
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densk [106]

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Explanation:

Given:

Machine purchased for $125,000

Salvage value of​ $10,000

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First, we'll evaluate depreciation per unit over the entire life of the machine:

i.e. Depreciation\ per\ unit = \frac{ Purchasing\ cost - Salvage\ value}{Total\ units\ produced}

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