Weighted average accumulated expenditure for current year. Given Information: Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years. Amount of 6% bond payable is $5,000,000. Amount of 9% note payable is $1,000,000.

Question

ABC Electronics had sales to customers of $600,000 during 2020. The company has consistently experienced a 30% gross profit percentage and estimates that 4% of all sales will be returned. During 2020, customers returned merchandise for credit of $20,000 to their accounts. The balance in the allowance for sales returns account at the beginning of 2020 was $28,000. What is the balance in the allowance for sales returns account at the end of 2020?

Answer 1

Question

Chapter 11, Problem 11.8E

a.

To determine

Weighted average accumulated expenditure for current year.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

b.

To determine

The amount of avoidable interest and actual interest.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

c.

To determine

The amount of interest to be capitalized and expensed during the year.

d.

To determine

To prepare: The journal entry to record the interest payments.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

ABC Electronics had sales to customers of $600,000 during 2020. The company has consistently experienced a 30% gross profit percentage and estimates that 4% of all sales will be returned. During 2020, customers returned merchandise for credit of $20,000 to their accounts. The balance in the allowance for sales returns account at the beginning of 2020 was $28,000. What is the balance in the allowance for sales returns account at the end of 2020?

Which one is correct option?

???

Answer 2

Question

Chapter 11, Problem 11.8E

a.

To determine

Weighted average accumulated expenditure for current year.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

b.

To determine

The amount of avoidable interest and actual interest.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

c.

To determine

The amount of interest to be capitalized and expensed during the year.

d.

To determine

To prepare: The journal entry to record the interest payments.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 3

Question

Chapter 11, Problem 11.8E

a.

To determine

Weighted average accumulated expenditure for current year.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

b.

To determine

The amount of avoidable interest and actual interest.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

c.

To determine

The amount of interest to be capitalized and expensed during the year.

d.

To determine

To prepare: The journal entry to record the interest payments.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 4

Question

Chapter 11, Problem 11.8E

a.

To determine

Weighted average accumulated expenditure for current year.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

b.

To determine

The amount of avoidable interest and actual interest.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

c.

To determine

The amount of interest to be capitalized and expensed during the year.

d.

To determine

To prepare: The journal entry to record the interest payments.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 5

Chapter 11, Problem 11.8E

a.

To determine

Weighted average accumulated expenditure for current year.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

b.

To determine

The amount of avoidable interest and actual interest.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

c.

To determine

The amount of interest to be capitalized and expensed during the year.

d.

To determine

To prepare: The journal entry to record the interest payments.

Answer 6

Chapter 11, Problem 11.8E

a.

To determine

Weighted average accumulated expenditure for current year.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

Answer 7

Chapter 11, Problem 11.8E

a.

To determine

Weighted average accumulated expenditure for current year.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

Answer 8

b.

To determine

The amount of avoidable interest and actual interest.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

Answer 9

b.

To determine

The amount of avoidable interest and actual interest.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

Answer 10

c.

To determine

The amount of interest to be capitalized and expensed during the year.

Answer 11

c.

To determine

The amount of interest to be capitalized and expensed during the year.

Answer 12

d.

To determine

To prepare: The journal entry to record the interest payments.

Answer 13

d.

To determine

To prepare: The journal entry to record the interest payments.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 17

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 18

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 19

Trending nowThis is a popular solution!

Answer 20

Trending nowThis is a popular solution!

Answer 21

Trending nowThis is a popular solution!

Answer 22

Trending now

Answer 23

This is a popular solution!

Answer 24

See solution

Check out sample textbook solution

Answer 25

Ch. 11 - Stephen J. Cosgrove is the Former Vice President....Ch. 11 - Prob. 11.2Q Ch. 11 - Prob. 11.3Q Ch. 11 - Prob. 11.4Q Ch. 11 - Will the expense/capitalization choice impact...Ch. 11 - Prob. 11.6Q Ch. 11 - Prob. 11.7Q Ch. 11 - For a long-lived operating asset acquired by...Ch. 11 - Prob. 11.9Q Ch. 11 - Prob. 11.10Q

Weighted average accumulated expenditure for current year. Given Information: Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years. Amount of 6% bond payable is $5,000,000. Amount of 9% note payable is $1,000,000.

Weighted average accumulated expenditure for current year. Given Information: Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years. Amount of 6% bond payable is $5,000,000. Amount of 9% note payable is $1,000,000.

The amount of avoidable interest and actual interest. Given Information: Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years. Amount of 6% bond payable is $5,000,000. Amount of 9% note payable is $1,000,000.

The amount of interest to be capitalized and expensed during the year.

To prepare: The journal entry to record the interest payments.

Chapter 11 Solutions

Weighted average accumulated expenditure for current year.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

The amount of avoidable interest and actual interest.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.