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mr Goodwill [35]
2 years ago
5

During 2021, its first year of operations, Ashbaugh Industries recorded sales of $21,000,000 and experienced returns of $1,400,0

00. Returns are accounted for as they occur, with additional estimated returns accrued at the end of the period. Cost of goods sold totaled $12,600,000 (60% of sales). The company estimates that 8% of all sales will be returned. The year-end adjusting journal entry to account for anticipated sales returns would include a:
Business
1 answer:
Yuliya22 [10]2 years ago
5 0

Answer:

Credit to refund liability of $280,000.

Explanation:

The year end adjusting entry would be

Sales Return $280,000 ($21 million × 8% - $1,400,000)    

    Refund Liability  $280,000    

(Being the anticipated sales return is recorded)

Here the sales return is debited as it increased the sales return and the refund liability is credited as it increased the liabilities

The same is to be considered

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Which is the primary reason to issue stock?A.To help investors earn higherrate of return B. To rise money to grow the company C.
tatyana61 [14]
B. To raise money to a grow a company. 

Stock is equity in a company that is used to help fund the expenses of a company, particularly when they are looking to grow beyond their current revenue sources. It is most useful when a company anticipates growing its revenues or decreasing its expenses through using this new capital in order to deliver a positive return for its equity investors who hold the stock certificates.
4 0
3 years ago
Bridge City Consulting bought a building and the land on which it is located for $175,000 cash. The land is estimated to represe
Darya [45]

Answer:

Part 1

D.E = $5,300

Part 2

a. Book Value = $61,900

b. Book Value = $122,500

Explanation:

Step 1 : Determine the Cost of Buildings

<em>Separate the Cost of Land and the Cost of Building from the Purchase Price</em>

<u>Calculation of the Cost of Building</u>

Purchase Price ($175,000 x 30%)   $52,500

Building Renovations                      $20,000

Total                                                  $72,500

Step 2 : Depreciation calculation

<em>Depreciation expense = (Cost - Residual Value) ÷ Useful Life</em>

                                      = ($72,500 - $19,500) ÷ 10

                                      = $5,300

After Year 2

<u>Buildings :</u>

Accumulated Depreciation = $10,600

Book Value = $72,500 - $10,600 = $61,900

<u>Land </u>

Book Value = $175,000 x 70% = $122,500

Note : Land is not depreciated

5 0
2 years ago
A risk of marketing myopia is that sellers pay more attention to
vitfil [10]

The correct answer is:   [D]:

________________________________________________

        " their products than to customer needs. "

________________________________________________

Hope this helps!

        Best wishes!

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5 0
3 years ago
Specialization and the division of ______ can increase productivity. Please choose the correct answer from the following choices
trasher [3.6K]

Answer:

Specialization and the division of labor can increase productivity.

Explanation:

Specialization is about an <em>invidivual</em> focusing on very specific tasks that are best suited to them according to their skills and knowledge. This concept can be applied to <em>companies</em> and <em>countries</em>, as they specialize on producing a small amount of products they excel at, for having the raw material, knowledge and/or technology to do so.

The division of labor is about breaking down the production process of a good in <em>different parts</em> performed by <em>different people</em> instead of having all workers performing all the tasks. The idea is to let workers be <em>specialists</em> in a small amout of tasks so that they can be more efficient and overall productivity can be greatly increased. This concept was introduced by the <u>'father of economics'</u> Adam Smith in his book "The Wealth of Nations" released in 1776.

Specialization and division of labor are complementing concepts that bring a company an increase in productivity and helps achieve economies of scale.

3 0
3 years ago
On January​ 1, 2018,​ Sanderson, Inc. acquired a machine for​ $1,110,000. The estimated useful life of the asset is five years.
denpristay [2]

Answer:

$702,400

Explanation:

Data provided in the question:

Cost of the machine acquired = $1,110,000

Useful life of the machine = 5 years

Residual value = $91,000

Method of depreciation is straight line

Now,

Annual depreciation = \frac{\textup{(Cost price - Residual value)}}{\textup{Useful life}}

or

⇒ Annual depreciation = \frac{\textup{(1,110,000 - 91,000)}}{\textup{5}}

or

⇒ Annual depreciation = $203,800

Book value = Cost of the machine - (Total depreciation in the given period)

now,

Duration of period from January 1, 2018 to end of 2019 = 2 years

Therefore,

The total depreciation = 2 × Annual  depreciation

= 2 × $203,800

= $407,600

Hence,

Book value at the end of 2019 = $1,110,000 - $407,600

or

Book value at the end of 2019 = $702,400

4 0
3 years ago
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