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gregori [183]
3 years ago
10

On Jan 5, a customer returned merchandise that had been purchased earlier on credit. The original sale was for $500, and the cos

t to the seller was $150. Demonstrate the required journal entry to record the return on the books of the seller, assuming the goods can be sold to another customer. Multiple choice question. Debit Accounts Receivable $500; credit Sales Returns and Allowances $500; credit Merchandise inventory $150; and credit Cost of Goods Sold $150. Debit Sales Returns and Allowances $150; credit Accounts Receivable $150. Debit Accounts Receivable $500 and credit Cash $500. Debit Sales Returns and Allowances $500; debit Merchandise Inventory $150; credit Accounts Receivable $500; and credit Cost of Goods Sold $150.
Business
1 answer:
Elodia [21]3 years ago
6 0

Answer:

Debit Sales Returns and Allowances $500; debit Merchandise Inventory $150; credit Accounts Receivable $500; and credit Cost of Goods Sold $150.

Explanation:

Based on the information given the required appropiate journal entry to record the return on the books of the seller, in a situation were the goods can be sold to another customer is :

Debit Sales Returns and Allowances $500

Debit Merchandise Inventory $150

Credit Accounts Receivable $500

Credit Cost of Goods Sold $150

(To record the return on the books of the seller)

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Emporia Corporation is a lessee with a capital lease. The asset is recorded at $810,000 and has an economic life of 8 years. The
Doss [256]

Answer:

The amount of depreciation expense the lessee should record for the first year of the lease is $108,000

Explanation:

To calculate the depreciation expense for each year the first thing you have to do is to substruct from the initial value the fair value at the end fo the lease, obtaining this way the depreciable amount.

For this case it would be:

$810,000 - $270,000= $540,000

Then you have to divide the depreciable amount by the years of the term the lease.

$540,000/5= $108,000

4 0
3 years ago
In the context of project management, a task duration is always the same as the amount of work (effort) it takes to finish the t
Mashutka [201]

Answer:

False

Explanation:

The statement that says that in the context of project management, a task duration is always the same as the amount of work (effort) it takes to finish the task is false because the effort is the time a person needs to finish a task while the duration is the period of time that a person has to finish it. For example, an employee has a task that takes forty hours of work to finish it but he has a month to do it. In this case, the effort is forty hours but the task duration is one month.

4 0
3 years ago
You have just won the lottery and will receive $530,000 in one year. You will receive payments for 25 years, and the payments wi
polet [3.4K]

Answer:

Present value= $3,642,651.54

Explanation:

Giving the following information:

You have just won the lottery and will receive $530,000 in one year. You will receive payments for 25 years, and the payments will increase by 4 percent per year. The appropriate discount rate is 10 percent.

First, we need to calculate the final value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual payment= 530,000

i= 0.04 + 0.10= 0.14

n= 25

FV= {530,000*[(1.14^25)-1]}/0.14

FV= 96,391,538.43

Now, we can calculate the present value:

PV= FV/(1+i)^n

PV= 96,391,538.43/ (1.14^25)

PV= $3,642,651.54

7 0
3 years ago
Which of the following entries would be recorded by a company that uses the cash basis method of​ accounting? A. Salaries Expens
liubo4ka [24]

Answer:

B is the correct option, because it indicates that rent expense was only recognized in the books of account when paid for in cash.

Explanation:

Cash basis of accounting simply implies that an organization that adopts it recognizes income when received and expense when paid for in cash.

The above is different from accrual basis,where income is recognized when earned(when obligation is discharged by the seller) and expense when incurred(when the goods involved or services have been received)

All other options except B have something to do with payment on account,hence they are wrong.

6 0
3 years ago
g Oregon Corp. prepares its financial statements annually and has a calendar year end. The adjusted trial balance ( NO MORE ADJU
Semmy [17]

Answer:

$1,700,000

Explanation:

The computation of the NET accounts receivable (the cash realizable value) at December 31, 2019 is shown below:

= Account receivable - allowance for doubtful debts

= $2,000,000 - $300,000

= $1,700,000

By deducting the allowance for doubtful debts from the account receivable we can get the net account receivable or the cash realizable value

Therefore we ignored the bad debt expense

5 0
2 years ago
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