In the given question, we have to explain that why the manager of the company wants to record sales return and allowances in a separate account by deducting it as a separate line item in income statement instead of recording all sales return and allowances in sales account.

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Answer 1

Question

Chapter 5, Problem 3E

Requirement-1

To determine

To determine:

In the given question, we have to explain that why the manager of the company wants to record sales return and allowances in a separate account by deducting it as a separate line item in income statement instead of recording all sales return and allowances in sales account.

Requirement-2:

To determine

To determine:

In the question we have to determine that how the sales return and allowance account can help the external stakeholders in their decision making.

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Caddy Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: Direct material of 4 yards at $5.75 per yard. Direct labor of 3 hours at $19 per hour. Overhead applied per sleeping bag at $20. In the month of April, the company actually produced 5,200 sleeping bags using 27,300 yards of material at a cost of $5.10 per yard. The labor used was 11,700 hours at an average rate of $18.50 per hour. The actual overhead spending was $96,200. Determine the total materials variance.

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Provide correct cash conversion cycle of this financial accounting question

Answer 2

Question

Chapter 5, Problem 3E

Requirement-1

To determine

To determine:

In the given question, we have to explain that why the manager of the company wants to record sales return and allowances in a separate account by deducting it as a separate line item in income statement instead of recording all sales return and allowances in sales account.

Requirement-2:

To determine

To determine:

In the question we have to determine that how the sales return and allowance account can help the external stakeholders in their decision making.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 5, Problem 3E

Requirement-1

To determine

To determine:

In the given question, we have to explain that why the manager of the company wants to record sales return and allowances in a separate account by deducting it as a separate line item in income statement instead of recording all sales return and allowances in sales account.

Requirement-2:

To determine

To determine:

In the question we have to determine that how the sales return and allowance account can help the external stakeholders in their decision making.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 5, Problem 3E

Requirement-1

To determine

To determine:

In the given question, we have to explain that why the manager of the company wants to record sales return and allowances in a separate account by deducting it as a separate line item in income statement instead of recording all sales return and allowances in sales account.

Requirement-2:

To determine

To determine:

In the question we have to determine that how the sales return and allowance account can help the external stakeholders in their decision making.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 5, Problem 3E

Requirement-1

To determine

To determine:

In the given question, we have to explain that why the manager of the company wants to record sales return and allowances in a separate account by deducting it as a separate line item in income statement instead of recording all sales return and allowances in sales account.

Requirement-2:

To determine

To determine:

In the question we have to determine that how the sales return and allowance account can help the external stakeholders in their decision making.

Answer 6

Chapter 5, Problem 3E

Requirement-1

To determine

To determine:

In the given question, we have to explain that why the manager of the company wants to record sales return and allowances in a separate account by deducting it as a separate line item in income statement instead of recording all sales return and allowances in sales account.

Answer 7

Chapter 5, Problem 3E

Requirement-1

To determine

To determine:

In the given question, we have to explain that why the manager of the company wants to record sales return and allowances in a separate account by deducting it as a separate line item in income statement instead of recording all sales return and allowances in sales account.

Answer 8

Requirement-2:

To determine

To determine:

In the question we have to determine that how the sales return and allowance account can help the external stakeholders in their decision making.

Answer 9

Requirement-2:

To determine

To determine:

In the question we have to determine that how the sales return and allowance account can help the external stakeholders in their decision making.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 5 - Prob. 1DQ Ch. 5 - 2. In comparing the accounts of a merchandising...Ch. 5 - Prob. 3DQ Ch. 5 - Prob. 4DQ Ch. 5 - Prob. 5DQ Ch. 5 - Prob. 6DQ Ch. 5 - Prob. 7DQ Ch. 5 - Prob. 8DQ Ch. 5 - Prob. 9DQ Ch. 5 - Prob. 10DQ

In the given question, we have to explain that why the manager of the company wants to record sales return and allowances in a separate account by deducting it as a separate line item in income statement instead of recording all sales return and allowances in sales account.

To determine: In the given question, we have to explain that why the manager of the company wants to record sales return and allowances in a separate account by deducting it as a separate line item in income statement instead of recording all sales return and allowances in sales account.

To determine: In the question we have to determine that how the sales return and allowance account can help the external stakeholders in their decision making.

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Chapter 5 Solutions

To determine:

In the given question, we have to explain that why the manager of the company wants to record sales return and allowances in a separate account by deducting it as a separate line item in income statement instead of recording all sales return and allowances in sales account.

To determine:

In the question we have to determine that how the sales return and allowance account can help the external stakeholders in their decision making.