False Value Hardware offers an unlimited, no questions asked right of return on all products. False...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
False Value Hardware offers an unlimited, no questions asked right of return on all products. False Value Hardware began 2018 with a credit balance of $22,000 in the allowance for sales returns account. Sales and cash collections from customers during the year were $650,000 and $610,000, respectively. False Value estimates that 6% of all sales will be returned. During 2018, customers returned merchandise for credit of $38,000 to their accounts. What is the balance in the allowance for sales returns account at the end of 2018? $11,000 $43,000 $23,000 $39,000 False Value Hardware offers an unlimited, no questions asked right of return on all products. False Value Hardware began 2018 with a credit balance of $22,000 in the allowance for sales returns account. Sales and cash collections from customers during the year were $650,000 and $610,000, respectively. False Value estimates that 6% of all sales will be returned. During 2018, customers returned merchandise for credit of $38,000 to their accounts. What is the balance in the allowance for sales returns account at the end of 2018? $11,000 $43,000 $23,000 $39,000
Expert Answer:
Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
Posted Date:
Students also viewed these accounting questions
-
What is the balance in the balanced scorecard?
-
What is the balance of payments disequilibrium? Can a country run a balance of payments deficit indefinitely? Explain how balance of payments disequilibria can be automatic self-correcting.
-
Given that y = x 2 , find the image of the curve y = x 2 after each of the following combinations of transformations. a. A stretch in the y-direction with factor 3 followed by a translation by the...
-
Suppose that it is desired to estimate the proportion of persons in a large population who have a certain characteristic. A random sample of 100 persons is selected from the population without...
-
Do you think that all religions are pointing in a similar direction, or are there irreconcilable differences among the world's religions?
-
The strongback is made of an A992 steel hollow circular section with the outer diameter of \(d_{o}=60 \mathrm{~mm}\). If it is designed to withstand the lifting force of \(P=60 \mathrm{kN}\),...
-
On January 1, 2014, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Inc., for a total of $980,000 in cash and other consideration. At the acquisition date, Smashing...
-
Imagine you are the CEO of an organization. How would you define the actions your organization is taking in regards to corporate social responsibility. And how would you engage your employees to...
-
Presented below are excerpts from Note 1 to Starbucks' September 30, 2012, consolidated financial statements in which Starbucks describes accounting policy for long-lived assets. a. Leasehold...
-
On June 30, 2014, Lipton, Inc. sold $100,000 of 8% bonds for $102,530. The bonds are dated June 30, 2014, pay interest annually on June 30, and will mature on June 30, 2019. On the basis of the above...
-
On January 1, 2026, Sheridan, Inc. declared a 10% stock dividend on its common stock when the fair value of the common stock was $30 per share. Stockholders' equity before the stock dividend was...
-
Sheridan Company has outstanding 603000 shares of $2 par common stock and 119000 shares of no-par 6% preferred stock with a stated value of $5. The preferred stock is cumulative and nonparticipating....
-
Lily's Market has net income of $42,180, total equity of $426,500, and total assets of $976,200. The dividend payout ratio is 0.35. What is the sustainable growth rate? (Keep four decimals in...
-
What is the cost of goods manufactured for 2024? Beginning finished goods, 1/1/2024 Ending finished goods, 12/31/2024 Cost of goods sold Sales revenue Operating expenses $84,000 79,000 306,000...
-
How does the author utilize mythological allusions to underscore the protagonist's hubris in the narrative?
-
The brochure needs to be designed with clear information for stakeholders: You will be writing four to six visionary statements based on your beliefs and values about education and care for the...
-
In Problem 8.43, determine the smallest value of for which the rod will not fall out of the pipe. IA -3 in.-
-
What are the tax implications of selling an asset when it still has some economic value? Consider, in particular, the issue when we use an accelerated depreciation schedule for calculating taxable...
-
Felix Uribe takes pride in doing things well. Even as a child, he was neat and organized; as an adult, Felix is fastidious and pays great attention to details. Currently, Felix is considering...
-
Suppose a firm, with a normal costing system, uses the number of units produced to allocate overhead to products. Use a numerical example to prove that under- or overapplied overhead equals the error...
-
Assume two periods to expiration, \(u=1.05, d=1 / 1.05, r_{f}=1.02, S_{0}=\$ 100\), no dividends, and \(X=\$ 100\) on a European put expiring at the end of the second period. a. Find: \(P_{u w}, P_{u...
-
Using the put-call parity model, determine the equilibrium price of the put in Question 1, given the equilibrium call value as determined by the binomial model. Comment on the consistency of the...
-
Suppose the US investor in Question 8 were risk averse, instead of risk neutral, and wants a risk premium of \(1 \%\) (annual) for assuming the exchange-rate risk on the international investment. a....
Study smarter with the SolutionInn App