Novelty Inc. developed a new product in 2020 and its financial results follow. To increase acceptance...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Novelty Inc. developed a new product in 2020 and its financial results follow. To increase acceptance by retailers, Novelty sold the product to retailers with an unconditional right of return, which expires on February 1, 2021. Novelty estimates returns to be 30%. All sales are on credit. Novelty uses the perpetual inventory system Sales Value Cost Value Sales in 2020 $144,000 $96,000 Returns of 2020 sales in 2020 9,600 6,400 Returns of 2020 sales in January 2021 12,000 8,000 a. Prepare the 2020 sales journal entries for Novelty Inc. b. Record actual returns in 2020. Assume actual returns are on credit. c. Record estimated returns on December 31, 2020. d. Record actual returns in 2021(for January) and any required adjusting entries. Assume actual returns are on credit. Novelty Inc. developed a new product in 2020 and its financial results follow. To increase acceptance by retailers, Novelty sold the product to retailers with an unconditional right of return, which expires on February 1, 2021. Novelty estimates returns to be 30%. All sales are on credit. Novelty uses the perpetual inventory system Sales Value Cost Value Sales in 2020 $144,000 $96,000 Returns of 2020 sales in 2020 9,600 6,400 Returns of 2020 sales in January 2021 12,000 8,000 a. Prepare the 2020 sales journal entries for Novelty Inc. b. Record actual returns in 2020. Assume actual returns are on credit. c. Record estimated returns on December 31, 2020. d. Record actual returns in 2021(for January) and any required adjusting entries. Assume actual returns are on credit.
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
In 2011, Austin Powers Corporation developed a new product that will be marketed in 2012. In connection with the development of this product, the following costs were incurred in 2011: research and...
-
In 2013, Austin Powers Corporation developed a new product that will be marketed in 2014. In connection with the development of this product, the following costs were incurred in 2013: research and...
-
Situation Gilmatt Company developed a new product that it planned to sell directly to customers and to promote heavily because of stiff competition in the market place. Its marketing department did...
-
Abbey Company completed the annual count of its inventory. During the count, certain items were identified as requiring special attention. Decide how each item would be handled for Abbey Company's...
-
Fall Creek is conducting the annual election for its five-member board of directors. The firm has 1,500,000 shares of voting common stock outstanding. a. Under a majority voting system, how many...
-
A conducting sphere of radius a is half-embedded in a liquid dielectric medium of permittivity s, as in figure. The region above the liquid is a gas of permittivity ?2. If the total free charge on...
-
In August 2014, Superior Structures of Ohio, LLC, and its president, Ryan Villhauer, applied for credit with Willoughby Supply Company, Inc. The application contained a section providing for a...
-
Turner Excavation maintains a checking account and has decided to open a petty cash fund. The following petty cash fund transactions occurred during July: July 2 Established a petty cash fund by...
-
Explain why there are the same number of tables in the relational model as compared to the number of entities in the logical model.
-
Barry Bird opened the Barry Bird Basketball Camp for children ages 10 through 18. Campers typically register for one week in June or July, arriving on Sunday and returning home the following...
-
Do you agree that your demeanor at work is important? Do you think its importance varies across situations, contexts, and jobs? Explain What role, if any, do you think EI plays in this situationsthe...
-
how Can I set off the expenses from my rental property against my other income?
-
A hysterical I.M. Dunce corners you in the hallway 30 minutes before accounting class. "Help me, Help me!" I.M. pleads. "I woke up this morning and discovered that my pet German Sheperds Fifo and...
-
Fact Pattern #1 The legislature in the State of Red enacted a new law requiring out-of-state sellers to collect and remit sales tax on the retail sales of goods and services in the State. Sellers...
-
is building consider as "hot asset" for partnership tax under section 751?
-
Assuming that you were hired as a management accountant, explain how will you use the S and VA (in savant framework) in a company? S is for strategy and VA for value adding. Please explain clearly...
-
The sales manager of Trisha's Global Marketing (TGM) is considering expanding sales by taking their Original Widget and modifying it for export into the European and Asian markets. Various changes...
-
Some people argue that the internal control requirements of the Sarbanes-Oxley Act (SOX) put U.S. companies at a competitive disadvantage to companies outside the United States. Discuss the...
-
The professional simulation for this chapter asks you to address questions related to the accounting for the statement of cashflows. KWW Professional Simulation 2 Statement of Cash Flows Time...
-
How can earnings management affect the quality of earnings?
-
Assume the same information as in E14-4, except that Foreman Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%....
-
Consider the following time series data. a. Construct a time series plot. What type of pattern exists in the data? b. Show the four-quarter and centered moving average values for this time series. c....
-
The following table reports prices and usage quantities for two items in 2009 and 2011. a. Compute price relatives for each item in 2011 using 2009 as the base period. b. Compute an unweighted...
-
Refer to exercise 35. a. Deseasonalize the time series using the adjusted seasonal indexes computed in part (c) of exercise 35. b. Using Minitab or Excel, compute the linear trend regression equation...
Study smarter with the SolutionInn App