cott Company had sales of $12,450,000 and related cost of goods sold of $7,700,000 for the year ending December 31, 20Y8. Scott provides customers a refund for any returned amaged merchandise. Scott Company estimates that customers will request refunds for 0.6% of sales and estimates that merchandise costing $40,000 will be returned in 20Y9.

cott Company had sales of $12,450,000 and related cost of goods sold of $7,700,000 for the year ending December 31, 20Y8. Scott provides customers a refund for any returned amaged merchandise. Scott Company estimates that customers will request refunds for 0.6% of sales and estimates that merchandise costing $40,000 will be returned in 20Y9.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In August, Joplin Designs sold $510,000 of merchandise; all sales were in cash.The cost of sales for August was $400,000. Based on past experience, Joplin uses an estimatedreturn rate of 3% of sales. Record the journal entries for the monthly sales, cost of sales,estimated returns, and cost of estimated returns for August.
Libscomb Technologies' annual sales are $5,024,963 and all sales are made on credit, it purchases $3,844,500 of materials each year (and this is its cost of goods sold). Libscomb also has $547,231 of inventory, $532,629 of accounts receivable, and beginning and ending of year $421,009 and $481,435 accounts payables (respectively). Assume a 365 day year. What is Libscomb’s Cash Cycle (in days)?
Record the transactions on the books of Martinez corporation.
Riley Kilgo Inc. purchased inventory costing $100,000 and sold 80% of the goods for $240,000. All purchases and sales were on account. Kilgo later collected 20% of the accounts receivable. Journalize these transactions for Kilgo, which uses the perpetual inventory system. For these transactions, show what Kilgo will report for inventory, revenues, and expenses on its financial statements. Report gross profit on the appropriate statement.
Y Wholesale Company began the year with merchandise inventory of $9,000. During the year, Y purchased $97,000 of goods and returned $6,300 due to damage. Y also paid freight charges of $1,200 on inventory purchases. At year-end, Y's ending merchandise inventory balance stood at $17,400. Assume that Y uses the periodic inventory system. Compute Y's cost of goods sold for the year. Less: Plus: Less: Cost of Goods Sold
Whispering Winds Corporation uses a perpetual inventory system and had inventory worth $88,500 at the beginning of the year. Purchases were made during the year for $393,000; however, 10% of these goods were returned to the supplier, and a 3% discount was taken on the remaining balance owing. Whispering Winds paid $3,500 cash for freight to ship the inventory to its location during the year. Whispering Winds reported cost of goods sold for the year of $295,000. Whispering Winds has a calendar year end. What is the balance in the inventory account at the end of the year? Balance If Whispering Winds counted its actual inventory balance as $118,000 at the end of the year, what adjusting entry, if any, would be made? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles and…
Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2021. The units have a list price of $800 each, but Thomas was given a 25% trade discount. The terms of the sale were 2/10 n / 30 . Required: 1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2021, assuming that the gross method of accounting for cash discounts is used. 2. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2021, assuming that the gross method of accounting for cash discounts is used. Please step by step answer
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $390,000. During 2021, Halifax sold merchandise on account for $12,400,000. Halifax's merchandise costs it 65% of merchandise selling price. Also during the year, customers returned $368,000 in sales for credit, with $203,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year. a) Record the year-end adjusting entry for estimated returns. b) Record the adjusting entry for the estimated return of merchandise to inventory. c) What is the amount of the year-end refund liability after the adjusting entry is recorded?
Subject: accounting
Jordache Corp. uses a perpetual inventory system and sells merchandise on account to Polo Limited for $2.000 on February 2, terms n/10. Management expects returns of 10%. The goods cost Jordache $800. On February 5, Polo returns merchandise worth $500 to Jordache. This merchandise costs $300 and is still in saleable condition; therefore, it was put back into inventory. On February 9, Jordache receives payment from Polo for the balance due. Identify the journal entry that Jordache needs to record for the sale of the merchandise on February 2. Accounts Receivable Sales Refund Liability Cash Accounts Receivable Accounts Receivable Sales Accounts Receivable Sales 2,000 1,800 1.800 2,000 1,800 200 1,800 1,800 2,000
EC Ltd. is a merchandising company. The company uses the perpetual method in recording its merchandise. Meanwhile, the treatment of uncollectible receivables is by using the allowance method. Below are transactions that occurred during 2019. Date Transactions Made credit sales of $100,000 to Brian Co. COGS for the product is $40,000. Jan-15 Received a note from Brian Co of S100,000, 3 months, 6% as a replacement of last month's debt that was due. Mar-15 Received notice that the note from Brian Co. cannot be fulfilled in time. EC Ltd estimates that the probability of uncollectible is 100%. Due to this condition, EC Ltd write-off Brian Co.'s note. Jun-15 Receivables from Brian Co. are reinstated, but only an amount of $75,000 is received and the remainder is written-off as uncollectible. Sep-30 Instruction: Journalize the transactions above!