A company reports net income for the year of $2,000,000. Shares outstanding during the first three months of the year equal 1,500,000, and shares outstanding during the final nine months of the year equal 2,000,000. There are no preferred dividends. What is the earnings per share?

• $1.33
• $1.07
• $1.00
• $0.57

A sporting good retailer sold $40,000 of equipment and supplies during the month of September on account. The retailer estimates that 2% of the goods will be returned as damage of defected. The retailer records its allowance for damaged goods as monthly closing entry. How should the retailer account for the anticipated return of damaged goods on September 30?

• Debit sales revenue $800; credit cost of goods sold (COGS) $800
• Debit Return expense $800; Credit accounts receivable $800
• Debit Sales allowance and return $800; Credit Allowance for sales returns and allowances $800
• Debit Sales allowances and returns $800; Credit Cost of goods sold (COGS) $800

Answer rating: 100% (QA)

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