The entry to record a return by a credit customer of defective merchandise on which no sales tax was charged includes
A. a debit to Accounts Receivable and a credit to Sales Returns and Allowances.
B. a debit to Sales Returns and Allowances and a credit to Accounts Receivable.
C. a debit to Sales and a credit to Sales Returns and Allowances.
D. a debit to Sales and a credit to Accounts Receivable.
Answer: B
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Verilux Company sold merchandise to Flight Corp on November 1, 2016, for $10,000 . Verilux accepted a promissory note from Flight Corp for $10,000 . The note has a term of 5 months and a stated interest rate of 7%. Verilux's accounting period ends on December 31, 2016 . What amount should Verilux recognize as interest revenue on December 31, 2016?
a. $ -0- b. $ 116.67 c. $ 291.67 d. $ 280.00
When a company understates the cost of goods sold, what is the effect on the inventory turnover ratio?
a. The ratio might increase or decrease depending upon the amount by which it is understated. b. The ratio will decrease. c. No effect. d. The ratio will increase.
Which of the following may result in allocation to separate queuing areas?
a. Time already spent waiting b. Excess capacity c. Urgency of the job d. Excess demand e. Multiple locations
The static budget, at the beginning of the month, for Steak Frites Company follows
Static budget: Sales volume: 1,100 units; Sales price: $70.00 per unit Variable costs: $33.00 per unit; Fixed costs: $39,800 per month Operating income: $900 Actual results, at the end of the month, follows: Actual results: Sales volume: 995 units; Sales price: $74.00 per unit Variable costs: $35.00 per unit; Fixed costs: $35,000 per month Operating income: $3,805 Calculate the sales volume variance for revenue. A) $4,800 U B) $7,350 U C) $3,885 U D) $3,980 F