Prepare Waterway's journal entries to record the $81.000 of actual returns on October 10, 202 the amount returned.) (Credit account titles are automatically Indented when the amount is entered. Do not indent manuall required, select "No Entry for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Cre
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
don't give answer in image format
![Prepare Waterway's journal entries to record the $81,000 of actual returns on October 10, 2020. (Hint: Use Accounts Payable for
the amount returned.) (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)
Account Titles and Explanation
Date
October
10, 2020
October
10, 2020
(To record returns from customers)
October
10.2020
October
10, 2020
(To record return of inventory)
(To adjust refund liability for end of right of return)
(To adjust cost of goods sold for end of right of return)
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F66812b29-b126-47f7-8df3-fde8630ed77a%2F8a0cf10d-e076-4d05-882b-0e4d893f31a5%2Fbf40tui_processed.jpeg&w=3840&q=75)
![On July 10, 2020, Waterway Ltd. sold GPS systems to retailers on account for a selling price of $920,000 (cost $736,000). Waterway
grants the right to return systems that do not sell in three months following delivery. Past experience indicates that the normal return.
rate is 15%. By October 11, 2020, retailers returned systems to Waterway and were granted credits of $81,000. The company follows
IFRS.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F66812b29-b126-47f7-8df3-fde8630ed77a%2F8a0cf10d-e076-4d05-882b-0e4d893f31a5%2Fo8axorz_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 3 steps with 3 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)