1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Andreyy89
3 years ago
5

Kristin Company sells 300 units of its products for $20 each to Logan Inc. for cash. Kristin allows Logan to return any unused p

roduct within 30 days and receive a full refund. The cost of each product is $12. To determine the transaction price, Kristin decides that the approach that is most predictive of the amount of consideration to which it will be entitled is the probability-weighted amount. Using the probability-weighted amount, Kristin estimates that (1) 10 products will be returned and (2) the returned products are expected to be resold at a profit. Indicate the amount of (a) net sales, (b) estimated liability for refunds, and (c) cost of goods sold that Kristen should report in its financial statements (assume that none of the products have been returned at the financial statement date).
Business
1 answer:
Lilit [14]3 years ago
6 0

Answer:

a. Net Sales = (300 units - 10 units return) * $20 each

Net Sales = 290 units * $20 each

Net Sales = $5,800

b. Liability for refunds = (10 units expected to be returned * $20 each)

Liability for refunds = $200

c. Cost of Goods Sold = (300 units - 10 return) * $12 per unit

Cost of Goods Sold = 290 units * $12 per unit

Cost of Goods Sold = $3,480

You might be interested in
Many companies secure financing from various sources with various payback periods. Not all funding sources are the same, and in
insens350 [35]

Answer and Explanation:

The classification of the funds as a short term or long term strategy as follows;

a. Line of credit = short term financing

b. Commercial paper = short term financing

c. Trade credit = short term financing

d. Bank load of 10 months = short term financing

e. Bond = long term financing  

f. Stock = long term financing  

g. Bank load of 20 months = long term financing

In this way, the classifications of the funds has to be done

5 0
3 years ago
A ________economy usually stresses the equality of all citizens. A________ economy aims to be self-sufficient. A ________economy
Alja [10]

Answer:

Command economy

Closed Economy

Traditional Economy

Mixed Market Economy

Explanation:

A command Economy  stresses the equality of all citizens.e. g Cuba and North Korea

A closed economy aims to be self sufficient with all activities confined to its economy.e.g Brazil's economy.

A traditional economy being the oldest form of economy upholds culture and history and as such relies more on bartering than money. It is mostly common in emerging markets and developing countries.

A mixed economy encourages private businesses with a degree of state monopoly.Example is the USA's economy.

5 0
3 years ago
Read 2 more answers
On January 1, 2012 Morgan Co. purchased a truck that cost $32,000. The truck had an expected useful life of 10 years and a $5,00
Novay_Z [31]

Answer:

Annual depreciation= $2,700

Explanation:

Giving the following information:

Morgan Co. purchased a truck that cost $32,000. The truck had an expected useful life of 10 years and a $5,000 salvage value.

The straight-line depreciation method provides an annual depreciation expense by dividing the book value by the number of useful years.

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (32,000 - 5,000)/10= $2,700

8 0
3 years ago
Karen Blumenthall was seriously injured in a car accident and is paralyzed from the waist down. Luckily she has an insurance pol
ruslelena [56]
Hi, ill help u out c:
7 0
3 years ago
Read 2 more answers
Where in a business plan should the executive summary go?
scoundrel [369]
I think the answer is in the middle  
5 0
3 years ago
Other questions:
  • If the month-end bank statement shows a balance of $36,000, outstanding checks are $10,000, a deposit of $4,000 was in transit a
    11·1 answer
  • What is the relationship between average total cost (ATC) and marginal cost (MC)? A. It is exactly the same as the relationship
    6·1 answer
  • The business cycle is thea.predictable changes in economic activity due to changes in government spending and taxes.b.irregular
    14·1 answer
  • Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The following information was o
    15·1 answer
  • Consider Frank’s decision to go to college. If he goes to college, he will spend $21,000 on tuition, $1,800 on books, and $11,
    14·1 answer
  • When reducing project duration, the duration for a project that is optimal is at the point where Select one: a. Direct costs are
    10·1 answer
  • During March, a firm expects its total sales to be $160,000, its total variable costs to be $95,000, and its total fixed costs t
    5·1 answer
  • What was the impact of the entry of the united states into world war one Germany faced a greater number of allied troops as more
    8·1 answer
  • "Consider a C corporation. The corporation earns $2.5 per share before taxes. After the corporation has paid its corresponding t
    10·1 answer
  • bombeck inc. has the following transactions during august of the current year. aug. 1: opens an office as a financial advisor, i
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!