A company allows 10% of gross sales to be returned within a month of sale, and estimates that potential returns amount to $ 25,000 at year- end based on December sales. The allowance for sales returns is now $ 10,000 (credit). What entry should be made?
Answer to relevant QuestionsAt the end of an accounting period, a company has $ 4,000,000 recorded in accounts receivable, all from sales. It is not likely that the company will collect all of the $ 4,000,000, even though all the sales really took ...How is a note receivable valued if it is (a) A no- interest note and (b) A low- interest note? Assume in all cases that the note had a term of two years. How would your answer change if the note had a term of two months?Mitrium Corp. is a large privately held company that manufactures frozen ice cream products, which are sold to large and small retailers across North America. The shares of this company are held by 12 individuals, some of ...The accounts of Polaris Company provided the following 20X5 information at 31 December 20X5:Accounts receivable ............... $ 1,899,000 (dr.) Allowance for sales discounts ........... 23,500 (cr.) Allowance for sales ...Belanger Ld. reports a current ratio of 2- to- 1 in its 20X2 financial statements. The statement of Financial position shows current assets of $ 2,540,500 and current liabilities of $ 1,284,000. Accounts receivable are $ ...
Post your question