Answer the following statements true (T) or false (F)
1. Caesar Company sold $250 of products on account to Scout, Inc. The terms were 2/15, n/eom. Using the "net" method to record the sale, the journal entry would include a credit to Accounts Receivable — Scout for $245.
2. Estimated Inventory Returns is a liability account used to record expected sales returns and allowances amounts.
3. Charmed, Inc. granted a sales allowance to a customer for damaged goods. The journal entry to record this includes a debit to Estimated Inventory Returns.
4. TNT Corp accepts a return of merchandise that a customer purchased on credit. The return will affect the balance sheet but not the income statement.
5. FOB destination means that title passes at the time of shipment of the product to the buyer from the seller.
1. FALSE
2. FALSE
3. FALSE
4. TRUE
5. FALSE
You might also like to view...
Referring to Table 2.3, which country's terms of trade did NOT change between 1990 and 2004?
a. Spain b. Sweden c. France d. Denmark
The following information (in 000s) is available for Trans Machine Tool Corporation for a specific period: Direct material $600 Direct labor 450 Factory overhead 400 What is the conversion cost for the company?
a. $950 b. $ 850 c. $1,350 d. $1,000
Which of the following is the most accurate statement concerning the use of a thank-you message following a job interview?
a. A written thank-you is not necessary if you thanked the interviewer in person before leaving the appointment. b. A thank-you is appropriate, and depending on the situation, could be in the form of a formal letter, a handwritten note, or an email message. c. A thank-you message should be mailed to arrive about two weeks following the interview if you haven't received a response from the company about the job. d. A thank-you message is not appropriate because it can be perceived as "pushy.".
An implied-in-law condition need only be substantially performed
a. True b. False Indicate whether the statement is true or false