Rusity Hardware makes only cash sales. It began 2021 with a credit balance of $32,300 in the refund liability account. Sales during 2021 were $630.000. Rusty estimates that 6% of all sales will be returned. During 2021, custormers returned merchandise for credit of $28,600 to their accounts. Rusty's 2021 income statement would report net sales of: Multiple Choice O $635.500. $692 200. $630.000 O Prey 11 of 15 Next

Rusity Hardware makes only cash sales. It began 2021 with a credit balance of $32,300 in the refund liability account. Sales during 2021 were $630.000. Rusty estimates that 6% of all sales will be returned. During 2021, custormers returned merchandise for credit of $28,600 to their accounts. Rusty's 2021 income statement would report net sales of: Multiple Choice O $635.500. $692 200. $630.000 O Prey 11 of 15 Next

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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Assuming that a Retail Merchandise business purchased 500 numbers of HP three in one printer for OMR 40 each on 1st December 2020 under the credit terms of 5/20, n/60. On 3rd December 2020 the business discovers that 100 numbers of HP three in one Printer are HP two in one. Therefore, the business returned the goods to supplier. On 5th December 2020, the business settles full cash. Which of the following journal entry is correct on 3rd December 2020 assumes that the business uses periodic inventory system? a. Debit Accounts payable OMR 16,000 Credit Cash OMR 15,200 Credit Discount OMR 800 b. Debit Purchase OMR 20,000 Credit Accounts payable OMR 20,000 c. Debit Accounts payable OMR 4000 Credit Purchase return and allowances OMR 4000 d. Debit Accounts payable OMR 20,000 Credit Merchandise Inventory OMR 20,000
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