Explain why purchase returns are credited directly to the Inventory account but sales returns result in a
Question:
Explain why purchase returns are credited directly to the Inventory account but sales returns result in a debit to the Refund Liability account, rather than the Sales account.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (8 reviews)
In a perpetual inventory system purchase returns are cred...View the full answer
Answered By
Anjali Arora
Having the experience of 16 years in providing the best solutions with a proven track record of technical contribution and appreciated for leadership in enhancing team productivity, deliverable quality, and customer satisfaction. Expertise in providing the solution in Computer Science, Management, Accounting, English, Statistics, and Maths.
Also, do website designing and Programming.
Having 7 yrs of Project Management experience.
100% satisfactory answers.
5.00+
3+ Reviews
10+ Question Solved
Related Book For
Financial Accounting Tools For Business Decision Making
ISBN: 9781119594574
8th Canadian Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine, Christopher D. Burnley
Question Posted:
Students also viewed these Business questions
-
Explain why purchase returns are credited directly to the Merchandise Inventory account but sales returns are not debited directly to the Sales account.
-
Why are contra-revenue accounts used rather than directly deducting from the Sales Revenue account?
-
Rather than purchase BLI directly (as in problems47 and 48), Amy and Brian will have their corporation, Spartan Tax Services (STS), acquire the business from Ernesto in a tax-deferred Type A merger....
-
What is Monetary system? Presentation Introduction, definition, examples, advantages, disadvantage, conclusion
-
Answer the below questions. a. What is an option ARM loan? b. Why is it unlikely that this loan type will be originated in the future?
-
An electromagnetic wave strikes a 1.30-cm2 section of wall perpendicularly. The rms value of the wave's magnetic field is determined to be 6.80 10-4 T. How long does it take for the wave to deliver...
-
The three bars are made of A-36 steel and form a pin-connected truss. If the truss is constructed when T 1 = 50F, determine the force in each bar when T 2 = 110F. Each bar has a cross-sectional area...
-
Kareem Construction Company has the following amounts of interest-bearing debt and common equity capital: Kareem Construction is in the 30 percent average tax bracket. A. Calculate the after-tax WACC...
-
EMMA WATSON, STEPHEN WATSON, CARTER OLIVIERA, an infant under the age of eighteen years by his Litigation Guardian, EMMA WATSON and ABIGAIL OLIVIERA, an infant under the age of eighteen years, by her...
-
A firm needs to fully satisfy the demand, which is fixed to 900 units and generates unit revenue of $10. However, its production is subject to the random yield. That is, only a random percentage of...
-
On March 21, OfficeTech signed a contract with Atlantic Tech University to sell it 100 laser printers and 125 additional high-volume toner cartridges. The contract price was $46,000. OfficeTech...
-
(a) Distinguish between a quantity discount and a purchase discount. (b) Explain how each kind of discount is recorded.
-
What are some general types of evaluation questions that a person should ask about a program?
-
To decide on your Grade Goal, respond to the questions below. Why are you taking this class? What do you want to get from this class? What is the end result that you need from this class? What are...
-
Simplify. Assume that b is positive. 2 (16b12) 2
-
What criteria to consider when selecting an app for partnership to cross promote each other's app on the Google Play Store? Include source.
-
What are the books and sites you would recommend for someone starting to learn Javascript? Which libraries and frameworks should I spend time on?
-
If 1.5 liters of 13.5 M Mgl2 is diluted to a final concentration of 8.9 M, what is the final volume of the diluted Mgl2 in liters?
-
Refer to the information in problems 22 and 23- a. Go to the IRS Web site (www.irs.gov) and print out the first page and Schedule K for Form 1065. Use the information in problem 22 to complete these...
-
During the month, services performed for customers on account amounted to $7,500 and collections from customers in payment of their accounts totaled $6,000. At the end of the month, the Accounts...
-
Rolling Hills Golf Inc. was organized on July 1, 2012. Quarterly financial statements are prepared. The trial balance and adjusted trial balance on September 30 are shown here. Instructions(a)...
-
A review of the ledger of Terrell Company at December 31, 2012, produces these data pertaining to the preparation of annual adjusting entries.1. Prepaid Insurance $15,200. The company has separate...
-
Open Road Travel Court was organized on July 1, 2011, by Tiffany Lampkins. Tiffany is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Tiffany prepared...
-
Create an ERD diagram Mini-Project #1 The Physician Master File from a DFD contains the following data elements: Data Element Social Security # Physician ID Last_Name First Name Mid_Init Hospital...
-
b. Assume that the two transactions are denominated in the applicable local currency units of the foreign entities. Prepare the entries required for the dates of the transactions and their settlement...
-
Will the solution do what we want it to do? Indicate whether each objective/requirement is met by this proposed solution. Boldface objectives are considered to be critical to the success of the...
Study smarter with the SolutionInn App