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2 years ago

When merchandise is returned for a refund or for credit to be applied to other purchases, the situation is called a(n)

1 answer:

4 0

The situation when a merchandise is returned for a refund or for credit to be applied to other purchases is called Purchase return inwards.

<h3>Return inwards</h3>

A purchase return as the name implies occurs when the buyer of a merchandise, services, inventory, fixed assets, or other items sends these goods back to the seller.

These purchase returns when excessive can interfere with the profitability of a business, so they should be closely monitored.

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On October 1, Sponge Bob, Inc. received $240 up front from a customer for a yearly magazine subscription. Magazines are provided

ddd [48]

Answer:

Oct 1 Cash $240 Dr

Unearned Subscription Revenue $240 Cr

Dec 31 Unearned Subscription Revenue $60 Dr

Subscription Revenue $60 Cr

Explanation:

The receipt of $240 upfront in advance from a customer is a liability for the business as the business has received cash for service that is yet to be provided. The business will record this as a debit to the cash account and credit to a liability account of Unearned Service Revenue.

On 31 december, the business has provided magazines for 3 months thus it has earned revenue for 3 months. The revenue for 3 months is,

Revenue per month = 240 / 12 = 20

For 3 months = 20*3 = 60

The business will record this as a credit to the subscription revenue and a debit to the unearned subscription revenue

4 0

3 years ago

Company had net income of $265,307. Depreciation expense is $27,888. During the year, Accounts Receivable and Inventory increase

Dafna1 [17]

option D is the correct answer - $254094

<u>Explanation:</u>

<u>As per the given data in the question, the following is used to calculate the net cash from the operating activities. </u>

<u>Net Income = 265307 </u>

Add : Depreciation = 27888

Less Increase in Account receivable = (17637)

Less Increase in Closing stock = ($28123)

Add : Prepaid Expenses ( Decrease) = 2852

Less: Decrease in Accounts payable = (4066)

Add: Loss on sale of Asset ( not Operating in nature) = 7873

Therefore, the Net cash from operating activities = $254094

3 0

3 years ago

If earnings are expected to grow at a constant rate over time of 0.03 and investors' rate of discount is constant at 0.04, and i

Usimov [2.4K]

Answer:

The answer is $15,656

Explanation:

Formular: P = D * $\frac{1 + g}{k - g}$

P represent estimated stock price or value = ?

D represent last dividend paid = $152

k represent discount rate = 0.04

g represent growth rate = 0.03

Using the fomular above; P = $152 * $\frac{1 + 0.03}{0.04 - 0.03}$

P = $152 * $\frac{1.03}{0.01}$

P = $152 * 103 = $15,656

:. The fundamental value of the stock market would be $15,656

7 0

3 years ago

Do you think Global Warming is real or not? Explain Why.

Serjik [45]

Answer:

Yes

Explanation:

Yes because over time the earth has gotten hotter and hotter each decade, which is undeniable proof that it is real.

7 0

3 years ago

Braxton's Cleaning Company stock is selling for $34.75 per share based on a required returmn of 10.4 percent. What is the the ne

mash [69]

Answer: Po = D1/Ke + g

$34.75 = D1/0.104 + 0.039

$34.75 -0.039 = D1/0.104

$34.711 = D1/0.104

D1 = 34.711 x 0.104

D1 = $3.61

Explanation: In this question. there is need to apply the formula for determining the current market price of a common stock. The current market price of a common stock is a function of next dividend capitalised at the appropriate cost of equity plus growth rate. in addition, we need to make the next dividend the subject of the formula.

5 0

3 years ago