Theoretically, the amount of estimated future returns and allowances on credit sales should be recorded during the period of the sale so as not to overstate sales and ending accounts receivable. In practice, these estimates are not recorded by most companies because
A) the amount of such returns and allowances tends to fluctuate too greatly from period to period.
B) there is too much uncertainty surrounding such estimates.
C) such estimates are not allowed according to generally accepted accounting principles.
D) the amount of such returns and allowances is usually not material.
D
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Fill in the blank(s) with the appropriate word(s).
The largest amount of market development funds is spent on slotting allowances
Indicate whether the statement is true or false
Use this information to answer the following question. Gross payroll $16,000 Federal income taxes withheld $1,800 Social security and Medicare rate 7.65% Federal unemployment tax rate .8% State unemployment tax rate 5.4% Payroll Taxes and Benefits Expense would be recorded for
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