Holiday ltd manufacturing Holidays Ltd manufactures caravans. Transactions for the year ended 30 June 2019 were asfollows:i. 600 caravans was manufactured at a cost of $15,000 each.ii. 500 caravans were sold for $20,000 each.iii. Cash was collected on 475 of the caravans sold.What was the reported profit for the year ended 30 June 2019 if revenue was recognizedwhen cash was received?a. $0b. $5,000,000c. $3,000,000d. $2,500,000e. $2,375,000

As per the information, the revenue is recognized on cash basis. Therefore, the company will record…

Answered: Holidays Ltd manufactures caravans.…

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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Presented below is information for Ayayai Company for the month of March 2020. Cost of goods sold $212,100 Rent expense $30,100 Freight-out 6,010 Sales discounts 7,010 Insurance expense 5,100 Sales returns and allowances 12,010 Salaries and wages expense 55,100 Sales revenue 385,000 Compute the gross profit rate. (Round answer to 2 decimal places, e.g. 25.20%.) Gross profit rate Enter the gross profit rate in percentages %
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Net Sales of ___.
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X Co. had $2 million in credit sales during 2021. Historically, 2% of its sales are returned by customers. During 2021, customers returned $25,000 worth of merchandise. The adjusting journal entry for 2021 will include: Debit to Refund Liability of $12,500. Debit to Sales Returns for $40,000 Debit to Sales Returns of $15,000. Credit to Sales Returns for $20,000
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