Q17 Assume that goods are not of the requiredquality, or as per the specifications of thesample sent by the supplier, or are defectiveetc. The return of such goods to thesuppliers is recorded in thea. None of the optionsOb. Returns Inword bookC. Sales returns bookd. Purchases returns book.

Option a is wrong because one among the options is correct. Option b is wrong because returns inward…

Answered: etc. The return of such goods to the…

Business

Accounting

etc. The return of such goods to the suppliers is recorded in the

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter9: Working Capital

Section: Chapter Questions

Problem 7Q

See similar textbooks

Related questions

Q: Define the term merchandise returns.

A: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a…

Q: How is total cost of goods sold and the total amount billed to customers calculated?

A: A job cost sheet is a sheet which is used to record the manufacturing costs .

Q: The return of goods by a customer ( Sales Return ) should be credited in the ledger account of ?

A: Sales return in accounting is used to refer the goods or item once purchased and returned to the…

Q: Determine the following by preparing a multi-step form of SCI. a. Net Sales b. Net Purchases c. Cost…

A: Solution:- Calculation of the following items as follows:-

Q: Sales to Y Sales to others Cost of goods sold

A: A consolidated financial statement is inclusive of all the subsidiary companies where the owner has…

Q: Describe FOB shipping point and FOB destination. When does the buyer take ownership of the goods,…

A: Transportation Costs: The costs of delivering the merchandise inventory from the manufacturer to the…

Q: Describe about concept of the GOODS ON CONSIGNMENT?

A: Inventory: Inventory refers to the raw materials, work-in process, and the finished goods…

Q: What is the account title used for revenue when goods are delivered to customers?

A: Account title: An account title is a unique name assigned to an account in an accounting system. An…

Q: Define cost of goods sold. How is it computed? What two financial reports does it impact and how?

A: Cost of goods sold or COGS is the direct cost of the products sold/manufactured by the entity. It…

Q: Explain the accounting for sales with right of return.

A: Definition: Accounting for sales with a right of return: Accounting for sales with the right of…

Q: When does the cost of inventory become an expense?a. When cash is collected from the customerb. When…

A: Answer: b. When inventory is delivered to a customer

Q: An example of an expense classifi cation by function is: C . cost of goods sold.

A: Expenses are either classified by nature or by function.

Q: How to Determine the Transaction Price?

A: Definition: Transaction price: Transaction price refers to the price that a corporation receives…

Q: When should a seller view a payment to its customer as a refund of part of the price paid by the…

A: Revenue recognition principle: The revenue recognition principle refers to the revenue that…

Q: The cost of units sold is recorded by debiting Cost of Goods Sold and crediting

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: What are the main differences between a perpetual system and a periodic system? In your…

A: In accounting, there may be different methods to record a financial transaction. The selling and…

Q: What is the consolidated cost of goods sold?

A: On 30.06.2021, ABC acquired EFG = 70% Financial statement of 2022 states that : 1. In 2021, EFG sold…

Q: WHAT IS THE COST OF SALES?

A: Cost of sales in the business means all costs that are directly incurred for the manufacturing of…

Q: What is sales revenue? How will you calculate it?

A: Answer 1) The amount received by the business entity by offering and selling the goods &…

Q: Determine the following by preparing a multi-step form of SCI. a. Net Sales b. Net Purchases C. Cost…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: Explain how to determine the transaction price.

A: Determination of transaction price is one of the step of revenue recognition process. The…

Q: What is the difference between the methods of calculating cost of goods, periodic vs perpetual?

A: Inventory: Inventory refers to the goods purchased or material purchased and manufactured which is…

Q: Explain how negotiation between the supplying and buying units may be used to set transfer prices.…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Goods returned by customer will be debited to which account?

A: When a customer returns the goods sold to him it is called sales return i.e. it reduces the income…

Q: Who bears the freight when the terms of sale are (a) FOB shipping point, (b) FOB destination?

A: (a)If the sale is made with the terms FOB shipping point, the goods' ownership is transferred at the…

Q: How to calculate cost of sales

A: Introduction: Ending Inventory: The unsold inventory for the period is called Ending Inventory.…

Q: Describe how costs flow from inventory to cost of goods sold for the following methods: (a) FIFO and…

A: a.

Q: What is freight out, and how is it recorded by the seller?

Q: purchase discounts and purchase returns and allowances included in the calculation of cost of goods…

A: Discounts are of three types trade discounts, cash discounts, and purchases discounts. A trade…

Q: In accounting for consignment sales, sales revenue and the related cost of goods sold should be…

A: Introduction:- Consignment arise when goods are sent by their owner to an agent who undertakes to…

Q: Define and describe the differences between a sales return and a sales allowance

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Q: A cost - based transfer price considers the cost of producing the goods when determining the price.…

A: At the time of determining the prices of the goods, the cost of goods-producing is required to be…

Q: What is the difference between gross selling price and invoice price?

A: Invoices are the bill which display the total value of the product purchased. Be it gross selling…

Q: The transfer price is a revenue to sales devision and cost to the buying devision. Say true or False…

A: Transfer price is a price at which a transaction of two related divisions of the same corporation…

Q: Conceptually, how would you evaluate a quantity discount offerfrom a supplier?

Q: i.) Determine the cost of goods sold using each of the following flow assumptions:

Q: Compute the following: a) Net sales revenue b) Cost of goods sold

A: Gross profit is the amount earned from selling the company's products or rendering services. It is…

Q: WHAT IS THE TOTAL COST OF GOODS SOLD?

A: Cost of goods sold in the business means how much total costs has been incurred on manufacturing of…

Q: How is cost of goods sold classified in the financial statements?a. As a revenueb. As an expensec.…

A: Cost of goods sold is the cost of goods that are being sold in that particular period. It is…

Q: Selling Expenses Interest Revenue Net Sales Revenue Cost of Goods Sold Administrative Expenses

A: Net sales revenue = $113,500 Cost of goods sold = $85,000 Gross profit = Net sales revenue - Cost of…

Q: Who is responsible for the freight cost when the terms are FOB destination? Please explain with full…

A: FOB: FOB means "Free on Board", also known as "Freight on Board". It is important to decide who is…

Question

Q17

Assume that goods are not of the required
quality, or as per the specifications of the
sample sent by the supplier, or are defective
etc. The return of such goods to the
suppliers is recorded in the
a. None of the options
Ob. Returns Inword book
C. Sales returns book
d. Purchases returns book.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Evaluation of options

VIEW

Answer

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following is false regarding a perpetualinventory system?a. Physical counts are never needed because records aremaintained on a transaction-by-transaction basis.b. The Inventory records are updated with each inventorypurchase, sale, or return transaction.c. Cost of Goods Sold is increased as sales are recorded.d. A perpetual inventory system can be used to detectshrinkage
Which of the following accounts is an example of a contra-asset?A) Cost of Goods Sold B)Sales Discounts C) Purchases D) Deferred Revenue E) LIFO Reserve
Which of the following statements is NOT true? a.Sales Discounts is a contra-revenue. b.Sales Returns & Allowances has a DR normal balance. c.Freight costs are included when determining discounts. d.Purchase Discounts is a contra account.
Requirement a. What are the accounting requirements for a correct sales cutoff? A. A shipment should be recorded as a sale when the risks of ownership transfer to the buyer and collectability is reasonably assured. B. A shipment should be recorded as a sale when the merchandise is shipped. C. A shipment should be recorded as a sale when the payment for the merchandise has beeb received by the seller. D. A shipment should be recorded as a sale when the merchandise is received by the purchaser.
What account balance is not used to computer the cost of good sold? a. Sales b. Purchased c. Purchase discount d. MerchandiseInventory
Which one of the following statements is true regarding the cost of sales, if the perpetual inventory control system is in use? Select one: a. If goods are sold for cash or on credit, the cost of sales will decrease on the debit side. b. Under the perpetual inventory control system, there is no cost of sales. Therefore, the cost of sales is not affected. c. If goods are sold for cash or on credit, the cost of sales will increase on the debit side. d. If goods are sold for cash or on credit, the cost of sales will increase on the credit side.
When goods are shipped FOB destination and the seller pays the freight charges, the buyer a.does not take a discount b.journalizes a reimbursement to the seller c.makes no journal entry for the freight d.journalizes a reduction for the cost of the merchandise
Which of the following is not an external failure cost? a. correcting invoice errors b. rework c. warranty work d. processing returned merchandise
The realisation concept determines when goods sent on credit to customers are to be included in the sales figure for the purpose of computing the profit or loss for theaccounting period. Which of the following tends to be used in practice to determine when to include a transaction in the sales figure for the period. When the goods havebeen:a. dispatched b. invoiced c. delivered d. paid forGive reasons for your answer.
The prudence concept is applied here in the sense that revenue should not be anticipated, and included in the trading, profit and loss account, before it is reasonably certain to ‘happen’. Required Given that prudence is the main consideration, discuss under what circumstances, if any, revenue might be recognized at the following stages of a sale. (a) Goods have been acquired by the business, which it confidently expects to resell very quickly. (b) A customer places a firm order for goods. (c) Goods are delivered to the customer. (d) The customer is invoiced for goods. (e) The customer pays for the goods. (of) The customer’s cheque in payment for the goods has been cleared by the bank.
In a cost-divided income statement, changes in purchased goods (merchandise) must be reported under the item Change in inventory, etc. choose an alternative True False
Assume that a perpetual inventory system using the NET METHOD is in use. Which of the following statements regarding the journal entries prepared is correct? A) When a customer returns inventory, the seller debits Customer Refunds Payable. B) Shipping costs associated with sales with terms FOB, destination should be included in Cost of Merchandise Inventory. C) When a company receives payment from a customer for a sale, Cash is debited and Accounts Payable is credited. D) When a company sells merchandise with terms 2/10, n 30, the company will credit Merchandise Inventory for the amount of the discount of 2 percent of sales. Why is the answer A and not D?