I want to this question answer general Accounting During the year, L&M Leather Goods sold 1,080,000reversible belts under a new sales promotionalprogram. Each belt carried one coupon, which entitlesthe customer to a $4.80 cash rebate. L&M estimatesthat 77% of the coupons will be redeemed, eventhough only 507,000 coupons had been processedduring the year. At December 31, L&M should reporta liability for unredeemed coupons of:A. $831,600B. $2,433,600C. $3,991,680D. $1,558,080

Step 1:First calculate the total estimated value of coupon redemption: Total estimated value = No.…

Answered: During the year, L&M Leather Goods sold…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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At December 31, 2020, Feel Company had 20,000 gift certificates outstanding, which had been sold to customers during 2020 for P500 each. Feel operates on a gross margin of 60% of its sales. What amount of revenue pertaining to the 20,000 gift certificates should be deferred at December 31, 2020? *
Visions designs, markets, and distributes audio and gaming headphones, earbuds, and speakers. Assume that last year, Visions reported cost of goods sold of $157 million. Assume that this year, cost of goods sold was $116 million. Accounts payable was $23 million at the end of last year and $17 million at the end of this year. Required: 1. For this year, compute the average number of days that Visions's accounts payable are outstanding. Note: Do not round intermediate calculations and round your final answer to the nearest whole number. Use 365 days a year. Average number of days
Libscomb Technologies' annual sales are $6,615,140 and all sales are made on credit, it purchases $4,071,988 of materials each year (and this is its cost of goods sold). Libscomb also has $553,442 of inventory, $521,646 of accounts receivable, and beginning and ending of year $448,048 and $420,069 accounts payables (respectively). Assume a 365 day year. What is Libscomb’s Cash Cycle (in days)?
The Brick Company had cash sales of $221,600 for Year 1, Its first year of operation. On April 2, the company purchased 227 units of Inventory at $190 per unit. On September 1, an additlonal 170 units were purchased for $209 per unit. The company had 49 units on hand at the end of the year. The company's Income tax rate Is 40 percent. All transactions are cash transactlons. Requlred a. The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of Inventory, (3) a second purchase of Inventory, (4) the recognition of cost of goods sold expense, and (5) the payment of Income tax expense. Show the amounts of each event In horizontal statements models, assuming first a FIFO and then a LIFO cost flow. b. Compute net Income using FIFO. c. Compute net Income using LIFO. e. Which method, FIFO or LIFO, produced the larger amount of assets on the balance sheet? Complete this question by entering your answers in the tabs below. Required A Required B…
McDowell Industries sells on terms of 3/10, net 30. Total sales for the year are $912,500; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 40 days after their purchases. What is the day’s sales outstanding? What is the average amount of receivables? What is the percentage cost of trade credit to customers who take the discount? What is the percentage cost of trade credit to customers who do not take the discount and pay in 40 days. What would happen to McDowell’s account receivable if it toughened up on its collection policy with the result that all nondiscount customers paid on the 30th day?
Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?
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.
Destiny Vacations operates in a province with 15% HST, which is charged on all sales. In the month of May, the company recorded revenue of $120,000 of vacation packages. 40% of the sales were paid in cash; the remaining sales are on credit. In addition, Destiny Vacation purchased supplies costing $50,000, and was charged 15% HST on the purchase. Destiny paid for the supplies in the same month as purchase. What is the net HST receivable or payable to the government at the end of May? Question 2 options: $3,300 payable $10,800 payable $300 receivable $10,500 payable
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In 2021, Holyoak Inc. offers a coupon for $20 off qualifying purchases of its new line of products. Holyoak sold 10,200 of these products during the year. By year-end of 2021, 7,300 coupons had been redeemed and the $20 reduction of purchase price provided to customers. Holyoak's historical experience with such coupons indicates that 85% of customers use the coupon. Holyoak recognizes coupon expense in the period coupons are issued. What is the coupon promotion liability that Holyoak should report in its December 31, 2021, balance sheet? Multiple Choice O O O $20,400. $27,400. $17,200, $19,340.
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On its second year of operations, Victorias Co. thought of expanding its business. In order to generate additional cash necessary for this expansion, the company on September 1, 2009, factored P200,000 of accounts receivable to Escalante Finance Co. Factoring fee was 10% of the receivables purchased. The Finance Co. with-held 5% of the purchase price as protection against sales returns and allowances. On November 2, 2009, accounts receivable amounting to P500,000 was assigned to La Carlota Bank as collateral on P300,000, 20% annual interest rate loan. A 3% finance charge was deducted in advance. As of December 31, 2009, data relating to accounts receivable follows: Allowance for doubtful accounts – P6,700 (credit) Estimated uncollectibles – 2% of accounts receivable Accounts receivable excluding factored and assigned accounts – P95,000 Collections on assigned accounts – none The total cash generated from factoring and assigning the accounts receivable was A. P402,000 B.…

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