Accountant method of recording returns

Reference no: EM13143918

During the year, sales returns and allowances totaled $65,900. The cost of the merchandise returned was $40,000. The accountant recorded all the returns and allowances by debiting the sales account and crediting Cost of Merchandise Sold for $65,900.

Was the accountant's method of recording returns acceptable? Explain.

Reference no: EM13143918

Questions Cloud

Estimate mean monthly rent paid by whole student : Assume that, the standard deviation of a monthly rents paid by students in a particular town is $40 A random sample of 100 students was taken to estimate the mean monthly rent paid by the whole student population- solution?

Calculate probabiity of achieving positive net present value : Parker industries is analysing a 200000 equipment investment to produce a new product for the next 5 years. a study of expected annual after tax cashflows from the project produced the following data. using a hurdle rate of 14% calculate the proba..

Find probability that among calls recieved by switchboard : Use poisson approximation to the binomial distribution to find the probability that among 120 calls recieved by the switchboard.

Compute the total pressure in the container : a certain amount of NH4OCONH2 is placed in an evacuated rigid container and allowed to come to equilibrium. Calculate the total pressure in the container at equilibrium.

Accountant method of recording returns : The cost of the merchandise returned was $40,000. The accountant recorded all the returns and allowances by debiting the sales account and crediting Cost of Merchandise Sold for $65,900. Was the accountant's method of recording returns acceptable?..

Conclude that mean weight of bags is less than fifty pounds : Can Mr. Rutter conclude that the mean weight of the bags is less than 50 pounds? Use the 0.1 significance level. In a brief report, tell why Mr. Rutter can use the z distribution as the test statistic.

Compute the equilibrium partial pressures : At a particular temperature, Kp = 0.25 atm for the reaction N2O4(g) 2NO2(g) a. A flask containing only N2O4 at an initial pressure of 4.5 atm

Determining interest in the current year : Mark Hancock is a self employed attorney who operates his law practice as an unincorporated sole proprietorship. In 2010, the IRS disallowed several business deductions he took in 2007 and 2008. In addition to paying the deficiency and assessed pe..

How are these phenotypes inherited : a cross between a red-eyed male fruit fly and a female white-eyed fruit fly produced an f1 with 22 bar-eyed male fruit flies and 18 bar-eyed female fruit flies. how are these phenotypes inherited?

User Account

All Pages