|
$10,230
On August 1, Olivera Company sold merchandise in the amount of $4,600 to Wyne, with credit terms of 3/10, n/30. The cost of the items sold is $3,700. Olivera uses the perpetual inventory system. On August 4, Wyne returns some of the merchandise. The selling price of the merchandise is $460 and the cost of the merchandise returned is $370.The entry or entries that Olivera must make on August 4 is:
|
|
Sales returns and allowances
|
370
|
|
|
Accounts receivable
|
|
370
|
|
|
|
Sales returns and allowances
|
460
|
|
|
Accounts receivable
|
|
460
|
|
|
|
Accounts receivable
|
460
|
|
|
Sales returns and allowances
|
|
460
|
|
|
|
Sales returns and allowances
|
460
|
|
|
Accounts receivable
|
|
460
|
|
Merchandise inventory
|
370
|
|
|
Cost of goods sold
|
|
370
|
|
|
|
Accounts receivable
|
460
|
|
|
Sales returns and allowances
|
|
460
|
|
Cost of goods sold
|
370
|
|
|
Merchandise inventory
|
|
370
|
|
For the year ended December 31, 2010, Mason Company has implemented an employee bonus program equal to 7% of Mason’s net income, which employees will share equally. Mason’s net income (pre bonus) is expected to be $2,500,000, and bonus expense is deducted in computing net income. What is the amount that needs to be recorded for estimated bonus liability for 2010?
|
$115,000
|
|
$40,000
|
|
$163,551
|
|
$48,697
|
|
$175,000
A parcel of land is offered for sale at $151,000, is assessed for tax purposes at $113,000, is recognized by its purchasers as being worth $141,000, and is purchased for $138,000. The land should be recorded in the purchaser’s books at:
|
$144,000.
|
|
$113,000.
|
|
$138,000.
|
|
$141,000.
|
|
$151,000.
A company had cash sales of $49,563, credit sales of $38,576, sales returns and allowances of $7,118 and sales discounts of $4,393. The company’s net sales for this period equal:
|
$76,628
|
|
$99,650
|
|
$83,746
|
|
$81,021
|
|
$88,139
At the end of the day, the cash register’s record shows $1,300, but the count of cash in the cash register is $1,120. The correct entry to record the cash sales for the day is:
|
|
|
|
|
|
|
|
Cash
|
1,120
|
|
|
Cash over and short
|
180
|
|
|
Sales
|
|
1,300
|
|
|
|
Cash
|
1,300
|
|
|
Sales
|
|
1,120
|
|
Cash over and short
|
|
180
|
|
A machine originally had an estimated useful life of 7 years, but after 2 complete years, it was decided that the original estimate of useful life should have been 9 years. At that point the remaining cost to be depreciated should be allocated over the remaining:
|
11 years
|
|
13 years
|
|
9 years
|
|
7 years
|
|
4 years
What would be the account balance in the revenue ledger account after the following transactions?
|
Performed services and left a bill
|
$5,000
|
|
Performed services and collected immediately
|
$3,900
|
|
Performed services and billed customer
|
$2,600
|
|
Performed services on accounts
|
$6,800
|
|
Received partial payment on account
|
$1,900
|
|
$18,300 Credit
|
|
$16,400 Debit
|
|
$18,300 Debit
|
|
$20,200 Credit
|
|
$16,400 Credit
A company sells leaf blowers for $150 each. Each unit has a 3 year warranty that covers replacement of defective parts. It is estimated that 6% of all leaf blowers sold will be returned under the warranty at an average cost of $15 each. During October, the company sold 300,000 leaf blowers. 600 leaf blowers were serviced under the warranty during October at a total cost of $30,000. The balance in the Estimated Warranty Liability account on October 1 was $15,000. What is the company’s warranty expense for the month of October?
|
$259,750.
|
|
$270,000.
|
|
$30,000.
|
|
$300,000.
|
|
$265,000.
|
|
|
|
|
|
|
