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2 years ago

Write short notes on-: a)Micro enterprises b)cottage industry

Business

1 answer:

Effectus [21]2 years ago

6 0

Answer:

cottage industry is a small-scale, decentralized manufacturing business often operated out of a home rather than a purpose-built facility

Explanation:

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What are the accounting differences between cash and receivables from the perspective of a buyer? A seller? How are these differ

bogdanovich [222]

Answer:

From a buyer's perspective, a sale made on credit represents a liability. While a sale made on cash represents a decrease of current assets.

From a seller's perspective, a sale made on credit or cash increases current assets, but the possibility of a bad debt always exist, therefore, accounts receivables must be periodically adjusted due to bad debts.

If the seller or buyer uses accrual accounting system, the previous description holds, but if they use cash basis accounting, things change a lot. When use cash basis, transactions are recorded only when cash is exchanged, so accounts receivables do not actually increase assets (seller's perspective), and accounts payables do not increase liabilities (buyer's perspective).

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2 years ago

The 2016 income statements of Leggett & Platt, Inc. report net sales of $3,749.9 million. The balance sheet reports accounts

sergejj [24]

Answer:

option (A) 49 days

Explanation:

Data provided:

Net sales = $3,749.9 million

Accounts receivable on December 31, 2016 = $486.6 million

Accounts receivable on December 31, 2015 = $520.2 million

Now,

The duration from December 31, 2015 to December 31, 2016 = 365 days

Days sales outstanding = $\frac{\textup{Average accounts receivable}}{\textup{Credit sales}}\times Number of days$

Days sales outstanding = $\frac{\frac{\$486.6 + \$520.2}{2}\textup{million}}{\$\textup{3,749.9 million}}\times365$

Days sales outstanding = $\frac{\$\textup{503.4 million}}{\$\textup{3,749.9 million}}\times365$

Days sales outstanding = 48.99 ≈ 49 days

Hence,

The correct answer is option (A) 49 days

5 0

2 years ago

Charleston, Inc. has Accounts Receivable of $320,000 and an Allowance for Doubtful Accounts of $16,000. If it writes-off a custo

noname [10]

Answer:

$304,000

Explanation:

Please see attachment

5 0

3 years ago

In the current year, Borden Corporation had sales of $2,190,000 and cost of goods sold of $1,295,000. Borden expects returns in

NNADVOKAT [17]

Answer:

The entries are as follows

To record estimated returns on Sales

Debit: Sales Refund Payable Account $131,400

Credit: Accounts Receivables $131,400

To record estimated Cost of Sales returns

Debit: Inventory Returns Estimated Account $77,700

Credit: Inventory on Sales on Returns $77,700

Explanation:

To derive the figure for Sales Refund payable for the year

6% of $2,190,000

= $\frac{6}{100} * 2,190,000$ = $131,400

To derive the figure for Inventory cost on Sales Refund payable for the year

6% of $1,295,000

= $\frac{6}{100} * 1,295,000$ = $77,700

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2 years ago

What is a warranty?

Delvig [45]

Answer:

Explanation:

A warranty is a written guarantee, issued to the purchaser of an article by its manufacturer, promising to repair or replace it if necessary within a specified period of time.

7 0

2 years ago

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Write short notes on-: a)Micro enterprises b)cottage industry ​

Write short notes on-: a)Micro enterprises b)cottage industry