Which of the following statements regarding sales returns and allowances is not true?
A. New revenue recognition rules require sellers to report sales net of expected returns and allowances for annual periods.
B. Sales Refund Payable is a current liability account.
C. The Inventory Returns Estimated account is a current liability account.
D. When sales returns and allowances adjustments are made to sales, an estimate must also be made for the cost side.
E. Sales returns and allowances estimates are typically made as period-end adjustments.
Answer: C
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a. the publisher newspaper had the reproduction rights as derivative works b. the publisher newspaper had the reproduction rights since they were "works for hire" c. the article authors had the reproduction rights d. electronic reproduction is not subject to the Copyright Act e. none of the other choices
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Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price$90 Units in beginning inventory 0Units produced 3,400Units sold 3,000Units in ending inventory 400 Variable costs per unit: Direct materials$21Direct labor$38Variable manufacturing overhead$6Variable selling and administrative expense$4Fixed costs: Fixed manufacturing overhead$54,400Fixed selling and administrative expense$3,000What is the total period cost for the month under the absorption costing?
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