Answer:
a. Dr Sales $619,200
Cr Customer Refunds Payable $619,200
b. Dr Estimated Returns Inventory $400,000
Cr Cost of Merchandise Sold $400,000
Explanation:
a. Preparation of the journal entry to record Estimated customer refunds and allowances
Dr Sales $619,200
($51,600,000 × 1.2%)
Cr Customer Refunds Payable $619,200
(To record Estimated customer refunds and allowances )
b. Preparation of the journal entry to Estimated customer returns
Dr Estimated Returns Inventory $400,000
Cr Cost of Merchandise Sold $400,000
(To record Estimated customer returns)
B and C, are bad feautures. A makes more sense, than D, so A should be your answer.
Answer:
Calculations below
Explanation:
beginning cash balance $ 26,000
Add; Cash receipts $ 105,000
Total cash available $ 131,000
Less: Cash disbursments $ (94,000)
Excess (Deficieny) of cash available over disbursments $ 37,000
Borrowings ($70,000-$37,000) $ 33,000
Ending cash balance $ 70,000
Answer:
Indirect taxes
Explanation:
Indirect taxes are the taxes levied on transactions as opposed to direct taxes that are imposed on incomes. An indirect tax is added to the prices of goods and services and collected by the seller or retailer. The retailer acts as the tax intermediary and submits the taxes collected to the government.
Examples of Indirect taxes include excise duty tax, value-added tax, and sales tax. Gas attracts sales tax and road maintenance tax. These taxes increase the price of gas, making them indirect taxes.
