Why are contra-revenue accounts used rather than directly deducting from the Sales Revenue account?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 69% (13 reviews)
Contrarevenue accounts are used for recording sales discounts and sales retu...View the full answer
Answered By
Joemar Canciller
I teach mathematics to students because I love to share what I have in this field.
I also want to see the students to love math and be fearless in this field.
I've been tutoring these past 2 years and I would like to continue what I've been doing.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Question Posted:
Students also viewed these Accounting questions
-
What is gross profit? How is the gross profit percentage computed? Illustrate its calculation and interpretation assuming Net Sales is $ 100,000 and Cost of Goods Sold is $ 60,000.
-
What is the difference between FOB shipping point and FOB destination? How do these terms relate to the revenue principle?
-
Sellall Department Stores reported the following amounts in its adjusted trial balance prepared as of its December 31 year-end: Administrative Expenses, $ 2,400; Cost of Goods Sold, $ 22,728; Income...
-
In 2020-21, a taxpayer makes a number of disposals, as listed below. Which of these disposals would be exempt from CGT? (a) An antique table sold for 5,000. (b) A watercolour painting sold at...
-
Two sound sources have intensities of and 10-6 W/m2, respectively. Which source is more intense and by how many times more?
-
For an income management strategy of taking a bath, the probability of the manager receiving a bonus in a future year rises. Explain why. (CGA- Canada)
-
Using only the linear part of the moisture absorption curve for a temperature of \(77^{\circ} \mathrm{C}\) in Figure 5.12, and assuming a thickness of \(2.54 \mathrm{~mm}\), estimate the diffusivity...
-
Using the data in Table 10.2, a. What was the average annual return of Microsoft stock from 20022011? b. What was the annual volatility for Microsoft stock from20022011? TABLE 10.2 Realized Retum for...
-
Ron Marden and Tip Baker operate separate auto repair shops. On January 1, 2020, they decide to combine their separate businesses which were operated as proprietorships to form M & B Auto Repair, a...
-
1. Use the systems administration concepts you learned in the course to provide technical improvements to current processes. 2. Implement solutions based on an organizations restrictions, like...
-
In response to the weak economy, your companys sales force is urging you, the sales manager, to change sales terms from 1/10, n/30 to 2/10, n/45. Explain what these terms mean and how this switch...
-
If a Chicago-based company ships goods on September 30 to a customer in Hawaii with sales terms FOB destination, does the Chicago-based company include the inventory or the sale in its September...
-
Solve Prob. 7?28 assuming that each beam has a uniform weight of 150 lb/ft. -10 ft- 2 ft 10 ft- .C D.
-
When a wire \(2.0 \mathrm{~m}\) long carries a 10-A current in the \(+x\) direction in a uniform external magnetic field, the magnetic force exerted by the field on the wire is \(3 \mathrm{~N}\) in...
-
Explain how dignity can be applied to AnyDomain.
-
List some business models where trust SAP can be applied. Explain them.
-
Developing any application using stability approach simplifies things. Explain and justify.
-
Explain what EBT, BO, and IO are, and how they form the basis of stability model.
-
In Exercises 1 through 26, use integration by parts to find the given integral. 1- x dx
-
An item of depreciable machinery was acquired on 1 July 2009 for $120,000 by cash It is expected to have a useful life of 10 years and zero salvage value On 1 July 2012, it was decided to revalue the...
-
Mattel, Inc., and Hasbro are two of the largest and most successful toymakers in the world, in terms of the products they sell and their receivables management practices. To evaluate their ability to...
-
Expedia, Inc., disclosed the following rounded amounts (in thousands) concerning the Allowance for Doubtful Accounts on its Form 10-K annual report. Required: 1. Create a T-account for the Allowance...
-
C&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the arrangement, CSM agreed on February 28, 2018, to advance Jeff $50,000 on a...
-
Bronchial alveolar lavage and four endobronchial biopsies were performed and submitted to the insurance carrier as follows: 31625 x 4 units, 31624-51. Is this claim coded appropriately?
-
What goals are used to measure labor and management partnerships?
-
1. A Supervisor email you a question. 2. Potential client comes to your office. He has $40000 in wages on W-2. He also listed $30000 of charitable contributions, mostly clothing, on a single piece of...
Study smarter with the SolutionInn App