Journal entries: The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting. Adjusting entries : Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement. To prepare: December 31 year-end adjusting entry for estimated future sales returns and allowances (revenue side).

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Answer 1

Question

Chapter 5, Problem 21E

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: December 31 year-end adjusting entry for estimated future sales returns and allowances (revenue side).

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: December 31 year-end adjusting entry for estimated future inventory returns and allowances (cost side).

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: Journal entry to record merchandise returned on January 3

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Accounting records are maintained on a computer using proprietarysoftware.Your assistant is a newly recruited business graduate who has done an accounting course buthas no practical experience.Because of the small size of the company there is limited opportunity for segregation ofduties. You decide, as in previous years, that the appropriate audit strategy is to obtainevidence primarily through the performance of substantive procedures. You also plan toperform the audit around the computer as the proprietary software is known to be reliable anddetails of all transactions and balances can be readily printed out.On arriving at the company's premises in December 2019 to perform the final audit on the 31October 2019 financial statements, you obtain a copy of the year end bank reconciliationprepared by the bookkeeper and checked by the managing director. This is reproduced below. Balance per bank statement 31 October 2019: $36752.00Deposits outstanding:30 October…

Answer 2

Question

Chapter 5, Problem 21E

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: December 31 year-end adjusting entry for estimated future sales returns and allowances (revenue side).

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: December 31 year-end adjusting entry for estimated future inventory returns and allowances (cost side).

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: Journal entry to record merchandise returned on January 3

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Answer 3

Question

Chapter 5, Problem 21E

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: December 31 year-end adjusting entry for estimated future sales returns and allowances (revenue side).

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: December 31 year-end adjusting entry for estimated future inventory returns and allowances (cost side).

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: Journal entry to record merchandise returned on January 3

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Answer 4

Question

Chapter 5, Problem 21E

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: December 31 year-end adjusting entry for estimated future sales returns and allowances (revenue side).

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: December 31 year-end adjusting entry for estimated future inventory returns and allowances (cost side).

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: Journal entry to record merchandise returned on January 3

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 21E

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: December 31 year-end adjusting entry for estimated future sales returns and allowances (revenue side).

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: December 31 year-end adjusting entry for estimated future inventory returns and allowances (cost side).

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: Journal entry to record merchandise returned on January 3

Answer 6

Chapter 5, Problem 21E

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: December 31 year-end adjusting entry for estimated future sales returns and allowances (revenue side).

Answer 7

Chapter 5, Problem 21E

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: December 31 year-end adjusting entry for estimated future sales returns and allowances (revenue side).

Answer 8

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: December 31 year-end adjusting entry for estimated future inventory returns and allowances (cost side).

Answer 9

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: December 31 year-end adjusting entry for estimated future inventory returns and allowances (cost side).

Answer 10

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: Journal entry to record merchandise returned on January 3

Answer 11

To determine

Concept Introduction:

Journal entries:

The business runs with the transactions it makes. Every transaction results in some outcome like the creation of an asset, liability, income, loss, gain, or expense. The transactions are recorded based on the resulting outcome. The debits and the credits are made based on the rules of accounting.

Adjusting entries: Adjusting entries are prepared to complete the financial statement of the company and to reflect the accrual method of accounting. Adjusting entries are prepared before the issuance of the financial statement.

To prepare: Journal entry to record merchandise returned on January 3

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 5 - Applying merchandising terms C1 P1 Enter the...Ch. 5 - Identifying inventory costs C2 Costs of $5.000...Ch. 5 - Merchandise accounts and computations C2 Use the...Ch. 5 - Computing net invoice amounts P1 Compute the...Ch. 5 - Recording purchases, returns, and discounts taken...Ch. 5 - Recording purchases and discounts taken P1 Prepare...Ch. 5 - Recording purchases and discounts missed Pl...Ch. 5 - Prob. 8QS Ch. 5 - Prob. 9QS Ch. 5 - Prob. 10QS

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Chapter 5 Solutions