The three people in scenario (a) will create 40 units of lawn-mowing services and 0 units of car-washing services if they spend their entire time mowing lawns.
In case (b), if all three people spend their time cleaning vehicles, they will only create 40 units of car washing services rather than any lawn-mowing services. In case (c), if all three people devote half of their time to each task, they will complete 20 units of vehicle washing and 20 units of grass mowing work. In case (d), if Edison only cuts lawns, Brian only washes cars, and Tim divides his time equally between each task, they will each generate 20 units of lawn-mowing services and 20 units of car-washing services.
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if you want to pay the lowest rent possible, should you hope that demand for apartments is elastic or inelastic? choice 1 of 2:elastic choice 2 of 2:inelastic
Moderately elastic demand for flats is what a tenant would wish for if they wanted to pay the least amount of rent feasible. Rent prices have a big impact on how many individuals are looking to rent, which is a sign that the demand for flats is elastic.
Rent prices may be lowered by landlords to entice tenants when they face more competition for tenants. Renters benefit from cheaper rent prices as a result. On the other hand, if apartment demand is inelastic, a change in rent prices will not have a substantial impact on the number of persons looking to rent.
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with the covenant of seisin, the grantor warrants that a) if the title fails, the grantor will compensate the grantee for any loss. b) the grantee's title is good against third-party claims to establish superior title. c) there are no recorded liens on the property. d) he is the owner of the property and has the right to convey title to it
If and when someone asserts a claim to the title of the grantee, the grantor is obligated under this covenant to defend that claim.
Is Grantor the same as owner?
An asset's owner is referred to as a grantor. The grantor is the existing owner of the property in real estate. This kind of phrase is typically used when selling or transferring ownership of a home. In such cases, the grantor is the one who sells or transfers the property to a third party. In real estate, the grantor is the individual who transfers ownership rights of a property to another person, while the grantee is the one who receives the property. But depending on the circumstance, their transaction's specifics can change.
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in 2020, president trump signed an executive order limiting the ability of social media companies to restrict speech on their platforms. on what grounds might these companies challenge the order?
The usable basis that Social media companies can used is that social media companies are private organizations and can regulate speech as they see fit. So that, Trump as a president can not order limiting the ability of social media companies to restrict speech on their platforms.
Private social media generally can be defined as any social space allowing users to choose exactly who they want to communicate with, without sharing information in a public forum. There are several types of private social media, such as the several app is private social whereas traditional app is public social media.
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the majority of what a particular restaurant serves is premade, requiring the staff to thaw, heat, and serve the items. a restaurant with this type of menu would expect to have
The majority of what a particular restaurant serves is premade, requiring the staff to thaw, heat, and serve the items. a restaurant with this type of menu would expect to have higher than average food costs and lower than avg labor costs.
Human Resources and the labour that will be delivered by these resources must always be taken into consideration when starting any firm. The money that will be used to pay for labour costs, often known as payroll costs, is another item that must always be accounted for. These expenses are referred to as the funds that will be allocated to pay for the labour and services that the company's human resources deliver. This payroll, or labour cost, determines how much money will be paid to each employee of the restaurant, including the management team.
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you started a project on 9/29/2019. the project ended on 08/01/2022. how many working days did you have for the entire project?
741 1037 1287 832
This is owing to the fact that you have 832 working days between September 29, 2019, and August 1, 2022 to complete the project.
How would you characterise a project?
A project is just a collection of tasks that must be completed in order to attain a specific goal. A project may also be defined as a set of inputs and outputs required to achieve a specific goal. Projects can be basic or complex.
A project work is a well-planned piece of study that entails a task or challenge that the student does, either individually or in a group, to supplement and apply what they learn in the classroom and lab. It makes use of the learning-by-doing and learning methodologies.
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Which of the four Ps does Spirit Airlines rely on most to create value for its customers?
- product
- people
- place
- price
- promotion
Spirit Airlines relies heavily on the four Ps of customer, operational, product, and locational excellence to add value for its customers.
Which of the four pillars of marketing is the most crucial?These are Price, Place, Product, and Promotion. These four Ps are crucial for meeting consumer needs at the appropriate time and location. The most crucial element, according to Philip Kotler, is to anticipate where people are heading and halt in front of them.
Why is the product the most crucial of the four Ps?One of the essential elements that makes it possible to connect with customers and produce sales is the place that products play in the marketing mix. Along with the product's price, location, and advertising.
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for this question, see retirement problem in content. if you calculate the present value of the savings plan of $10,000 annual payments, your calculation is the present value as of what birthday?
By the time you are 55 years old, you have calculated your compounded savings and need to decide if you have enough money saved.
How do you define "calculating"?
Calculation, often known as the act of utilizing arithmetic or logic to solve a problem, is the act of calculation. If you made the right calculation, you can wear your sister's favorite dress and return it before she arrives home. Making a computation requires meticulous planning.
to determine a cylinder's capacity The time it will take me to drive to Chicago needs to be estimated. The price of installing new carpet throughout the entire property was calculated. Before making more investments in the company, we must determine our chances of success.
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During World War II, many American companies focused on manufacturing materials for military use;
following the war and a return to a peacetime economy there was a resurgence in marketing research.
From the list below, identify which research strategy was introduced following World War II.
O very short surveys
O motivational research
customer rewards
O opinion polling
O focus groups
O experimental testing of products by consumers
American businesses specializing in producing supplies for the government have used customer incentives, motivational studies, and very brief surveys.
What is motivational research?The phrase "motivation research" is used to describe a variety of qualitative research techniques that were created to delve into consumers' minds and elucidate the hidden or subliminal motivations and objectives driving everyday consumption and purchasing habits. Marketing professionals benefit in a variety of ways from motivation research. They are able to adjust their marketing by better understanding why customers may or may not purchase their goods. The target market for various goods and services can also be determined with its assistance. Any letter of motivation should start out simply, mentioning the program you're applying for. Describe your future project's clear career purpose in the first place, as well as your selection of this specific PhD program.To learn more about motivational research refer to:
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Brief Exercise 3-09 The adjusted trial balance of Miller Company at December 31, 2020, includes the following accounts: Owner's Capital $16,400, Owner's Drawings $7,000, Service Revenue $39,000, Salaries and Wages Expense $16,000, Insurance Expense $2,000, Rent Expense $4,000, Supplies Expense $1,500, and Depreciation Expense $1,300. Prepare an income statement for the year
Revenue from services 39,000 Expenses $16,000 spent on salaries and wages; $2,000 spent on insurance. Rent costs 4,000; supply costs 1,500. Depreciation costs 1,300. 24,800 total expenses 14,200 in net income.
What are gross and net income?The amount of an employee's income that remains after payroll deductions for expenses like taxes, benefits, and other charges is known as gross pay.
What does salary net income mean?The total pay received after all required deductions, such as taxes, from the total gross pay, is known as the net salary. This is the total amount, after any deductions, that is credited to the employee's bank account.
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What are the 6 qualitative characteristics of financial information?
The 6 qualitative characteristics of financial information is relevance, understandability, verifiability, timelines, comparability and faithful representation.
The financial information is the formal records of the financial activities and position of a business, person or other entity.
Relevance financial information is represented in a structured manner. So, that it is easy to understand. The Representational faithfulness is also called as reliability, in which the information accurately reflects a company’s resources and transactions, etc.
Verifiability is the extent to which information is reproducible given the same data and assumptions. Timeliness is in which time information is available to users of accounting information.
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diane initially deposited $11,500 into a money market account and made no additional deposits or withdrawals. when she closed the account in exactly one year, its value had grown to $12,500. calculate the annual growth rate for the money market account. round your answer to two places after the decimal.
The annual growth rate is 8%
Initial deposit by Diane = $11,500
The grown value = $12,500
The average annual growth rate is the average rise or fall in the value of a portfolio, cash flow, or investment asset over a given time frame. It is calculated by averaging the stated year-over-year growth rates. By deducting the old value from the new value and dividing it by the original value, the growth rate is determined.
Calculating the annual growth -
Grown value - Initial Value / Grown Value
= 12,500 - 11,500 / 12,500
= 1000/12,500
= 0.08
= 8%
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explain how some of the ancient civilizations described in this module conduct business in order to make a profit. give examples. what was the purpose of business in cases where it was not to make a profit?
In ancient civilizations, business was conducted in a variety of ways to make a profit.
In the Indus Valley civilization, merchants traded goods with other civilizations in order to make a profit. For example, they would buy and sell jewelry, pottery, and other items. In Ancient Greece, merchants used bartering as a way to make a profit. They would trade goods such as olive oil, grains, and animals for other goods such as spices and cloth. In some cases, the purpose of business was not to make a profit. In Ancient Egypt, business was used to support the state’s economy. Merchants would purchase and sell goods to provide resources to the government, as well as to support the military and religious institutions. In Ancient China, merchants were also used to support the government by providing resources and services. They would also contribute to the state by paying taxes. The term "ancient civilization" refers to the first established and stable settlements that served as the foundation for succeeding governments, countries, and empires.
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rushing had net income of $174 million and average total assets of $1,890 million. its return on assets (roa) is:
Rushing's return on assets (ROA) is 9.2%
Net income of Rushing = $174 million
Average total assets of Rushing = $1,890 million.
A profitability ratio called return on assets (ROA) gauges the effectiveness with which a business turns its assets into earnings. When a business aims to boost its return on assets, it strives to boost its profit margin. ROA can be used by management, and investors to evaluate how well a business uses its resources to turn a profit. One may calculate a company's ROA by dividing its net income by all of its assets.
Calculating the return on assets -
Return on Assets = Net Income/Average Total Assets
Substituting the values -
= 174 million/1,890 million
= 0.092 or
= 9.2%
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a marketing manager that plans new products to meet consumer needs should
The idea that businesses should meet consumers' wants in a certain way She should as the marketing director plans new items to satisfy client wants.
What function does marketing serve when you know what your customers want and need?The wants and demands of a customer can, however, be influenced by social and marketing factors. A marketing agency's primary responsibility is to assist in the development and promotion of goods and services by emulating a customer's specific desire for a brand that will better enable them to meet one or more of their needs.
How do marketers determine and satisfy consumer needs?Some people call this a customer demands analysis, and it gives you insightful information about your target audience. Focus groups, social media monitoring, and keyword research are typical techniques for learning what clients want.
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Josephine is seeking to expand her rare stamp collection. Each year, rare stamps increase in price at a three percent rate. She believes that if she invests her money for one year, she should be able to buy 16 stamps for what 15 stamps would cost today. What is the nominal rate necessary to compensate for waiting and cover inflation
The nominal rate necessary to compensate for waiting and cover inflation is 6.7%.
How do you calculate the nominal rate?To calculate the nominal rate necessary to compensate for waiting and cover inflation, you can use the formula:
Nominal rate = (Future value / Present value)^(1/n) - 1
Where:
Future value is the amount of stamps you will be able to buy in one year (16)
Present value is the amount of stamps you can buy today (15)
n is the number of years (1)
Plugging in the values, we get:
Nominal rate = (16 / 15)^(1/1) - 1
Nominal rate = (1.067) - 1
Nominal rate = 0.067 or 6.7%
So, the nominal rate necessary to compensate for waiting and cover inflation is 6.7%.
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what product characteristics affect logistics costs? discuss the effects of these characteristics on logistics costs.
Product weight is one factor that affects logistics costs. Shipping prices will be greater for heavier items compared to lighter ones.
How does factor 75 compare to factor?
Factor, a meal delivery business that was once known as Factor 75, promises to bring foods that are tasty, fresh, and healthful. Factor can be a wonderful choice for people looking for a solution to spend less time cooking while still improving their health because of its weekly rotating menu of wholesome, high-quality products. The employment of variable components rises as production rises, while the employment of these parts falls as production falls. The labour force, energy, and raw materials employed directly in production are some examples of typical variable components.
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measures how optimistic or pessimistic people are about the future health of the economy and how they will fare in the future. question 7 options: consumer confidence saving rate credit score income inequality
Consumer confidence assesses how hopeful or pessimistic individuals are about the economy's future health and how they will fare in the future. The correct answer is Consumer confidence.
What is consumer confidence?The Conference Board's Consumer Confidence Index is a poll that analyzes how hopeful or pessimistic consumers are about their future financial status. The CCI is founded on the assumption that if consumers are optimistic, they would spend more and boost the economy, but if they are pessimistic, their purchasing habits may lead to an economic slowdown or recession.
Consumer opinions and confidence in their financial future are measured by the Consumer Confidence Index survey.The Conference Board publishes the index, which is based on the Consumer Confidence Survey.The CCI gives insight into economic circumstances in the United States, particularly whether consumers are likely to make large purchases like houses and vehicles.To learn more about Consumer confidence, click
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james recently purchased a condominium apartment. what was recorded on public record after the closing, which proves james' ownership of the apartment...?
The deed establishes James' ownership of the condominium unit. A condominium, apartment, or condo is an independently owned unit in a complex or building of units.
After the sale of an condominium is completed, the transfer of ownership is often placed on public record using a document known as a deed. The deed acts as legal proof of ownership transfer, and it names the buyer (James) as the new owner of the unit. The deed is recorded with the local government and becomes part of the public record, which anybody can access. This provides as proof that James owns the residence. Condominium owners share ownership of the common property, which includes the floor, walls, walkways, stairwells, and outdoor areas. They own the airspace within their condominiums.
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true or false? 401ks are set up by yourself, independent of your employer, whereas iras are set up by your employer
False, A financial institution that manages 401(k) plans can help you set up a self-employed 401(k). These plans are easier to manage than 401(k)s because they only include 1 or 2 persons (k).
A 401(k) plan can be as straightforward or involved in its implementation as its creator desires. Most people today contract out for some of the work involved.
In particular, rather than spending a lot of money on lawyers to prepare customs paperwork, they utilize a "template" legal form to set up the 401(k) plan.
Preconfigured programs from 401(k) suppliers are commonly used unless the retirement plan is particularly complex or the user is wanting to be fancy (and is ready to pay for more features). These plans, often known as "volume submitters" or "prototype plans," are ideal for most businesses and NGOs.
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The right way of asking the question is:
True or false? 401Ks are set up by yourself, independent of your employer, whereas IRAs are set up by your employer.
a. True
b. False
tiger trade has the following cash transactions for the period. accounts amounts cash received from sale of products to customers $ 37,000 cash received from the bank for long-term loan 42,000 cash paid to purchase factory equipment (47,000 ) cash paid to merchandise suppliers (11,400 ) cash received from the sale of an unused warehouse 12,400 cash paid to workers (23,400 ) cash paid for advertisement (3,400 ) cash received for sale of services to customers 27,000 cash paid for dividends to stockholders (5,400 ) assume the balance of cash at the beginning of the period is $4,400. required: 1. calculate the ending balance of cash. 2. prepare a statement of cash flows. (cash outflows should be indicated by a minus sign.)
If the income statement includes subtotals like "Total expenses," for example, the best method is to use the subtotal number the place our missing account is and subtract out the different bills from that section.
The answer to that subtraction trouble is the fee of the lacking earnings statement account.
What is economic statements from incomplete records?Incomplete information refers to a situation in which an employer is no longer the usage of double-entry bookkeeping.
Instead, it is using a more informal accounting system, such as a single-entry system, to preserve a reduced quantity of data about its financial results.
Beginning money balance $3,400 Add: Cash receipts: Sale of merchandise to customers 32,000 Long time period loan 37,000 Sale of unused warehouse 11,400 ...Ending cash stability is $ 32200 Particulars Amount $ Opening Cash
merchandise suppliers (11,400 ) cash received from the sale of an unused warehouse 12,400 money paid to workrs
Examples of merchandising corporations include dealerships, supermarkets and clothing stores. service organizations include insurance plan providers, consultants and accountants. Both merchandising groups and service businesses have interaction in the sale of some thing to make a profit.
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as a percent of the us gross domestic product, healthcare costs are increasing (i.e., representing a larger percentage of the gdp). group of answer choices true false
True, the expense of healthcare is rising as a percentage of the US gross domestic product (i.e., representing a larger percentage of the GDP).
A monetary indicator of the market worth of all the final goods and services produced and sold (not resold) in a certain time period by nations is the gross domestic product (GDP). The subjective and complex nature of this measurement necessitates many evaluations before it can be accepted as a reliable indicator. While nominal GDP is more useful for comparing national economies on the global market, GDP (nominal) per capita does not account for variations in the cost of living and inflation rates of the various nations. Therefore, when comparing living standards between nations, employing a base of GDP per capita at purchasing power parity (PPP) may be more useful. The contribution made by each industry or sector of the economy can also be calculated as a percentage of total GDP. The per capita GDP of a region is determined by the GDP to total population ratio (also called the Mean Standard of Living).
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A merchandising business that sells to those who use or consume the goods
answer choices
retail merchandising business
wholesale merchandising business
corporation
stockholder
There are two kinds of merchandising businesses: retail and wholesale. But A retail merchandising business is one that sells goods to people who will use or consume them.
What is a Merchandising Company?A merchandising business is one that buys finished goods and sells them to customers. Merchandising businesses are the most common type of business with which people interact on a daily basis. These companies sell food, personal supplies, and even electronics to customers after purchasing the items in bulk from a manufacturer or distributor. The store may have purchased the items in bulk but provides them to customers in small, usable sizes. A merchandising business is defined by the process of purchasing or manufacturing bulk goods to sell individually.
Service providers do not fall into this category, which is an important consideration in merchandising businesses. Unless the company includes products as part of the service, the service does not suffice. Identify a business as merchandising. A barbershop is a good example of this. Barbering services alone cannot turn a barbershop into a merchandising business unless the barbershop sells hair products.
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An insurance company is analyzing the following three bonds, each with five years to maturity, annual coupon payments, and duration as the measure of interest rate risk.
What is the duration of each of the three bonds?
Duration of the Bond
a. $10,000 par value, coupon rate = 8. 5%, rb = 0. 15 years
b. $10,000 par value, coupon rate = 10. 5%, rb = 0. 15
c. $10,000 par value, coupon rate = 12. 5%, rb = 0. 15
The duration of each of the three bonds are:
a. 4.17
b. 4.06
c. 3.96
What is bond?A bond is a fixed-income investment that simulates a loan from an investor to a borrower (typically corporate or governmental). The terms of the loan and the payments are outlined in a bond, which can be compared to an I.O.U. between the lender and borrower. Companies, municipalities, states, and sovereign governments all use bonds to finance their operations and capital expenditures. Bondholders are the issuer's creditors, or debt holders.
a.
FV = 10,000
Pmt = 10,000 x 8.50% = $850
N = 5
R= 0.15
Price PV= Pmt x PVIFA(n,R) + FV x PVIF(n,R)
= 850 x 3.35216 + 10000 x 0.49718
= 7821.10
Duration = sum of t x CF x PVF / price
= 32617.04 / 7821.10
= 4.17
b.
FV = 10,000
Pmt = 10,000 x 10.50% = $1050
N = 5
R= 0.15
Price PV= Pmt x PVIFA(n,R) + FV x PVIF(n,R)
= 1050 x 3.35216 + 10000 x 0.49718
= 8491.57
Duration = 34442.50 / 8491.57
= 4.06
c.
FV = 10,000
Pmt = 10,000 x 12.50% = $1250
N = 5
R= 0.15
Price PV= Pmt x PVIFA(n,R) + FV x PVIF(n,R)
= 1250 x 3.35216 + 10000 x 0.49718
= 9162
Duration = 36267.96 / 9162
= 3.96
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company naturelle sells mounted butterflies, using butterfly baid it buys from another firm for $20,000. it pays its workers $35,000, pays $1,000 in taxes, and has a profit of $3,000. what is its value added?
$39,000 is its value added. Total value added in a business is determined by tabulating the unit value added for each unit of a sold good
What is meant by value added?Total value added in a business is determined by tabulating the unit value added for each unit of a sold good. Total value added therefore equals revenue less intermediary consumption. Thus, value added is described as a firm's total receipts less the cost of goods and services it has acquired from other businesses.Wages and salaries, interest, depreciation, rent, taxes, and profit are all considered to be part of value added. More specifically, it refers to the extra characteristics a business may include in a good or service to offer consumers or clients a perception that the value of the product or service has grown. To raise the perceived value of the product by the consumer, this could involve modifying the product's design or adding extras.
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the value of a company to its owners equals total resources of the company. group startstrue or false
The value of the company "owners does not equal the total resources of the company. present value of all the future cash flows that the company is expected to generate in the future. " is false because.
These cash overflows are deduced from the coffers of the company, similar as its people, products, services, and capital. still, the value of a company to its possessors isn't just the sum of the value of all its coffers. The value of a company to its possessors is determined by the capability of the company to induce unborn cash overflows that are advanced than the cost of its coffers.
thus, the value of a company to its possessors is the net present value of all anticipated unborn cash overflows, and not the sum of all its coffers.
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which kind of malware provides an attacker with administrative control over a target computer through a backdoor?
Through a backdoor, RAT malware allows an attacker to gain administrative control of a target computer, allowing them to perform a variety of malicious actions such as installing additional malware, stealing sensitive data, and gaining control of the person's computer.
What exactly does malware do?Malware can infect networks and devices and is designed to cause harm to those devices, networks, and/or users.
This harm may manifest itself differently to the user or endpoint depending on the type of malware and its goal. Malware can have a relatively mild and benign effect in some cases, but it can be disastrous in others.
Malware, regardless of method, is designed to exploit devices at the expense of the user and to the benefit of the hacker – the person who designed and/or deployed the malware. Malware authors use a variety of physical and virtual methods to infect devices and networks. Malicious programmed, for example, can be delivered to a system via a USB drive, popular collaboration tools, and drive-by downloads, which automatically download malicious programmed to systems without the user's permission or knowledge.
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an investor who was not as astute as he believed invested $285,500 into an account 10 years ago. today, that account is worth $220,800. what was the annual rate of return on this account?
The annual rate of return on this account was -3.9%. This means that the account lost value over the 10-year period.
What is the compound annual growth rate and how is it calculated for a stock investment?The compound annual growth rate (CAGR) is a measure of the average annual return on an investment over a specified period of time. It is calculated by taking the nth root of the total return of an investment, where n is the number of years the investment was held. The formula for CAGR is: (Ending value / Beginning value)^(1/n) - 1. By using CAGR, an investor can compare the growth of different investments over time and determine the average annual return on an investment.
The annual rate of return on this account is a measure of the performance of the investment over a period of time. It can be calculated by using the formula (FV/PV)^(1/n) -1, where FV is the final value of the account, PV is the initial value of the account, and n is the number of years. In this case, the initial value of the account is $285,500 and the final value is $220,800, and the investment period is 10 years. By plugging these numbers into the formula, we get ((220,800/285,500)^(1/10))-1 = -3.9%. This means that the investment lost 3.9% annually over the 10 year period. A negative return indicates that the investment has lost value over time, which could be due to various factors such as poor investment decisions, market conditions, or a combination of both.
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which is not one of the four types of deeds used to convey real estate? a) general warranty deed b) special warranty deed
a) general warranty deed. General warranty deeds, special warranty deeds, and quitclaim deeds are the three primary types of deed. General warranty deeds provide entire security.
deed to the grantee, whereas special warranty deeds provide partial security, and a quitclaim deed provides the recipient with the least legal protection. When the seller signs a general warranty deed, he or she promises that there are no liens on the property and that if there are, the seller would reimburse the buyer for such claims. Because of this, general warranty deeds are the most widely utilized kind of deed in real estate transactions.warranty deed. General warranty deeds, special warranty deeds, and quitclaim deeds are the three primary types of deed. General warranty deeds provide entire security.When the seller signs a general warranty deed, he or she promises that there are no liens on the property and that if there are, the seller would reimburse the buyer for such claims.
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rick deposited $2,700 into an account 9 years ago for an emergency fund. today, that account is worth $4,025. what annual rate of return did rick earn on this account assuming no other deposits and no withdrawals?
The annual rate of return did rick earn on this account assuming no other deposits and no withdrawals 4.54 percent
What is withdrawals?Owner withdrawals, often known as withdrawals, are payments made from an owner's stock in a business. In other words, it's money that the proprietor withdrew from the business for personal use. Instead of being a cost to the company, the withdrawal lowers equity. Due to the fact that cash is being taken out of the company, a withdrawal may have a negative effect on the liquidity of the organization. Cash transfers from a firm to its owner are known as withdrawals by owner. These monetary transfers lower the amount of stock in a company but have no effect on its profitability.Cash transfers from a firm to its owner are known as withdrawals by owner. These monetary transfers lower the amount of stock in a company but have no effect on its profitability.To learn more about withdrawals refer to:
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ProBuilder reports merchandise sales of $50,000 and cost of merchandise sales of $20,000 in its first year of operations ending June 30, 2016. It makes fiscal-year-end adjusting entries for estimated future returns and allowances equal to 2% of sales, or $ 1,000, and 2% of cost of sales, or $400. Prepare the June 30, 2016, fiscal-year-end adjusting journal entry for future returns and allowances related to sales. Prepare the June 30, 2016, fiscal-year-end adjusting journal entry for future returns and allowances related to cost of sales
The June 30, 2016, fiscal-year-end adjusting journal entry for future returns and allowances related to sales would be:
Debit: Returns and Allowances (sales) $1,000
Credit: Sales $1,000
Explanation: The company estimates that 2% of its sales will be returned or allowed for, so it debits the Returns and Allowances account for $1,000 (2% of $50,000 in sales) and credits the Sales account for the same amount, to reduce the reported sales for the year.The June 30, 2016, fiscal-year-end adjusting journal entry for future returns and allowances related to cost of sales would be:
Debit: Cost of Merchandise Sold $400
Credit: Returns and Allowances (cost of sales) $400
Explanation: The company estimates that 2% of its cost of merchandise sold will be returned or allowed for, so it debits the Cost of Merchandise Sold account for $400 (2% of $20,000 in cost of sales) and credits the Returns and Allowances account for the same amount, to reduce the reported cost of sales for the year.
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