Discuss the cause of the unusual balance of the cash account with a credit balance of $1,850, assuming that no errors have occurred during journalizing, and posting.

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Answer 1

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Chapter 2, Problem 3DQ

(a)

To determine

Discuss the cause of the unusual balance of the cash account with a credit balance of $1,850, assuming that no errors have occurred during journalizing, and posting.

(b)

To determine

Identify whether the credit balance of $1,850 in the cash account is an asset, a liability, owner’s equity, revenue, or an expense.

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L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7. In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question:

The standard rate per direct labor hour should

L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7. In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question: 1. Assume that 5% of the L.L. Bean boots are returned by customers for various reasons. L. Bean has a 100% refund policy for returns, no matter what the reason. What would the journal entry be to accrue L.L. Bean's sales returns for this one pair of boots? (Note: L.L. Bean most likely will make…

Answer 2

Question

Chapter 2, Problem 3DQ

(a)

To determine

Discuss the cause of the unusual balance of the cash account with a credit balance of $1,850, assuming that no errors have occurred during journalizing, and posting.

(b)

To determine

Identify whether the credit balance of $1,850 in the cash account is an asset, a liability, owner’s equity, revenue, or an expense.

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Answer 3

Question

Chapter 2, Problem 3DQ

(a)

To determine

Discuss the cause of the unusual balance of the cash account with a credit balance of $1,850, assuming that no errors have occurred during journalizing, and posting.

(b)

To determine

Identify whether the credit balance of $1,850 in the cash account is an asset, a liability, owner’s equity, revenue, or an expense.

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Answer 4

Question

Chapter 2, Problem 3DQ

(a)

To determine

Discuss the cause of the unusual balance of the cash account with a credit balance of $1,850, assuming that no errors have occurred during journalizing, and posting.

(b)

To determine

Identify whether the credit balance of $1,850 in the cash account is an asset, a liability, owner’s equity, revenue, or an expense.

Expert Solution & Answer

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Answer 5

Chapter 2, Problem 3DQ

(a)

To determine

Discuss the cause of the unusual balance of the cash account with a credit balance of $1,850, assuming that no errors have occurred during journalizing, and posting.

(b)

To determine

Identify whether the credit balance of $1,850 in the cash account is an asset, a liability, owner’s equity, revenue, or an expense.

Answer 6

Chapter 2, Problem 3DQ

(a)

To determine

Discuss the cause of the unusual balance of the cash account with a credit balance of $1,850, assuming that no errors have occurred during journalizing, and posting.

Answer 7

Chapter 2, Problem 3DQ

(a)

To determine

Discuss the cause of the unusual balance of the cash account with a credit balance of $1,850, assuming that no errors have occurred during journalizing, and posting.

Answer 8

(b)

To determine

Identify whether the credit balance of $1,850 in the cash account is an asset, a liability, owner’s equity, revenue, or an expense.

Answer 9

(b)

To determine

Identify whether the credit balance of $1,850 in the cash account is an asset, a liability, owner’s equity, revenue, or an expense.

Answer 10

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Answer 11

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Answer 13

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Discuss the cause of the unusual balance of the cash account with a credit balance of $1,850, assuming that no errors have occurred during journalizing, and posting.

Solution Summary: The author explains the reason for the unusual cash account credit balance of 1,850, assuming no errors have occurred during journalizing, and posting.

Concept explainers

Discuss the cause of the unusual balance of the cash account with a credit balance of $1,850, assuming that no errors have occurred during journalizing, and posting.

Identify whether the credit balance of $1,850 in the cash account is an asset, a liability, owner’s equity, revenue, or an expense.

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