Explain the accounting for sales with right of return.

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: In generating a pro forma balance sheet, on what is the percentage of salesmethod based?

A: Balance Sheet is one of the financial statements that summarize the assets, the liabilities, and the…

Q: Explain an example how to calculate gross profit percentage.

A: Gross margin percentage: The percentage of gross profit generated by every dollar of net sales is…

Q: Briefly explain the difference between gross profit, net profit and EBIT.

A: Gross Profit is computed by deducting Cost of goods sold from Sales. Gross profit is the profit a…

Q: payment payroil percentage the amount of sales contributed by a sales person? O a. Sales O b.…

A: Note: As per our guidelines, we can only answer 1 question at once. Since, you haven't mentioned…

Q: What is the adjusted balance of Sales and Invenfories?

A: Adjusted Balance of Sales: $49,25,600 Adjusted Balance of Inventories: $3,17,400

Q: Define Sales discounts.

A: Merchandising businesses: Merchandising companies which buy goods from suppliers, or manufacturers,…

Q: Define sales returns.

A: Sales:   It is the goods and services sold by one company to their customers for a period.

Q: Define Sale of Receivables.

A: Sales: A sale refers to the operating activity through which the company earns income by selling…

Q: A sales discount is added in calculating net sales

A: The net sales are reported in the income statement of the company. The expenses would be deducted…

Q: How to calculate total selling expense

A: Selling expenses are the expenses incurred to sell a product to the customer.

Q: What types of liabilities, assets, and equity are not assumed to vary directly with sales

A: Solution:- The following types of assets, liabilities, and equity are assumed to vary directly with…

Q: the way to adjust purchases in order to arrive at the cost of sales figure is to ?

A: Cost of Sales = Opening Inventory + Purchases - Closing Inventory

Q: Under what circumstances should sellers consider the time value of money when recognizing revenue?

A:

Q: Distinguish between the sales values at splitoff method and the NRV method.

A: Sales value at split-off method: Sales value at split-off method allocates joint cost to each joint…

Q: While reporting revenue, how a company should consider barter arrangement and discount?

A: Revenue Reporting: The process of accounting for revenue for a product you offer to a client is…

Q: What are the assumption of THE LIFO RETAIL METHOD?

A:

Q: Briefly explain the accounting treatment for sales returns and allowances. Where are these accounts…

A:

Q: What is the other name of purchases returns

A: Whenever inventory is being purchased in business for sale or for use in production and…

Q: Which of the following is not a component of Net Sales?a. Sales Returns and Allowancesb. Sales…

A: Sales revenue: It refers to the money earned by the business from selling its services and products…

Q: ne revenue recognition principle (point of sale).

A: There are two bases of Accounting (1) Cash bases Accounting System (2) Accrual bases Accounting…

Q: WHAT IS THE TOTAL SELLING AND DISTRIBUTION EXPENSES

A: Selling and distribution expenses includes all the expenses incurred for making a sale and providing…

Q: What does a “downstream” sale of inventory refer to and when is the profit recognized?

A: Downstream sale of inventory: When a parent company transfer goods to any of its subsidiaries, it is…

Q: Explain the calculation procedures for and significance of return on sales.

A: The return on sales (ROS) ratio is a statistic for evaluating a business's operational efficiency.…

Q: What is Target’s policy with respect to accounting for merchandise returns?

A: Financial Statements: Financial statements are a group or reports that present the financial…

Q: When sales are made with a right of return, the company_ а. should recognize revenue for the full…

A: The revenue would be posted in the income statement of the company. The expenses are deducted form…

Q: Describe the accounting treatment for merchandise returns.

A: Purchase returns: Purchase returns are the goods returned by the buyer out of the goods purchased.…

Q: What are trade margins? How do they relate to thepricing for a produce, of goods?

A: A product is manufactured so that it can be sold to the consumer for the consumption purpose.…

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: The classification and normal balance of the sales discount account would be A. expense and debit B.…

A: The seller for increasing their sales uses the sales discount method and for recovering early…

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: Briefly explain the accounting treatment for sales returns.

A:

Q: Find the Gross Profit

A: Direct costs are associated with the manufacturing of goods/services provided to consumers,…

Q: Distinguish between the gross and net methods of accounting for purchase discounts.

A:

Q: Define Selling profit.

A: Net income: Net income is the excess amount of revenue that arises after deducting all the expenses…

Q: How to calculate net sales revenue and net purchases

A: The income statement is one of the financial statements of the business which is prepared to know…

Q: A can defined as a partial payment remunerated as an advance on the sales person's commission. O a.…

A: Charge account:- It is an arrangement where one person can purchase products or services on credit.…

Q: The classification and normal balance of sales discount

A: The sales discount is the discount provided to customers, which decreases the value of sales…

Q: How to get or compute the Net sales?

A: Net sales can be calculated by deducting sales returns and sales discounts.

Q: Define Sales returns and allowances

A: The Numerical has covered the concept of Sales Return and Sales Allowance.