Which of following errors will be rectified through suspense account:(a) Sales return book undercast by $ 1,000.(b) Sales return by Madhu $ 1,000 not recorded.(c) Sales return by Madhu Rs 1,000. recorded as $ 100.(d) Sales return by Madhu $ 1,000 recorded through purchases returns book
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Which of following errors will be rectified through suspense account:
(a) Sales return book undercast by $ 1,000.
(b) Sales return by Madhu $ 1,000 not recorded.
(c) Sales return by Madhu Rs 1,000. recorded as $ 100.
(d) Sales return by Madhu $ 1,000 recorded through purchases returns book
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- A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize this sales return, assuming the customer has not yet remitted payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, purchases D. sales discounts, cost of goods soldA customer returns $870 worth of merchandise and receives a full refund. What accounts recognize this sales return (disregarding the merchandise condition entry) if the return occurs before the customer remits payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, merchandise inventory D. accounts receivable, cost of goods sold. Which of the following error will be rectified through suspense account Purchase return to Vishal $1,000 not recorded Purchase return to Vishal $1,000 recorded through Sales return book Purchase return book under cast by $1,000 Purchase return to Vishal $1,000 recorded as $100
- A customer returned merchandise purchased with cash with a sales price of $7,500. The cost of goods was $3,000. Which of the following represents the correct way to record this transaction assuming an adjusting entry had been prepared for estimated returns? A. Refunds Payable 7,500 Sales Revenue 7,500 Merchandise Inventory 3,000 Estimated Returns Inventory 3,000 B. Refunds Payable 7,500 Cash 7,500 Merchandise Inventory 3,000 Estimated Returns Inventory 3,000 C. Sales Returns and Allowances 7,500 Cash 7,500 Estimated Returns Inventory 3,000 Merchandise Inventory 3,000 D. Sales Revenue 7,500 Cash 7,500 Merchandise Inventory 3,000 Cost of Goods Sold 3,000Based on the following information: Sales returns and allowances (credit sales) $20,000 Cash sales $1,200,000 Unadjusted balance in Allowance for Doubtful Accounts 1,000 credit Credit sales 2,150,000 If bad debts are estimated to be 2% of net credit sales, in the adjusting entry to recognize uncollectible accounts, the debit to expense will be for a. $52,000 b. $51,000 c. $50,000 d. $42,600Using the financial information presented for Alexandria Co., compute the missing amounts. Do not include dollar signs or commas in your answers. If an amount is to be deducted, do NOT include parentheses or negative signs. Sales revenue Sales returns and allowances 40,000 Net sales 90,000 Cost of goods sold Gross profit 70,000 Operating expenses Net income 20,000
- If sales were overstated by recording a false credit sale at the end of the year, where could you find the false “dangling debit”?a. Inventory.b. Cost of goods sold.c. Bad debt expense.d. Accounts receivable.The following Purchases Ledger Control Account PLCA was prepared for the year: Bal b/d 45,000 Bank 285,000 Credit Purchases * ? 145,000 Return outwards 12,500 Discount received 24,000 Bal c/d 78,500 297,500 297,500 It was suspected that there are some errors in the preparation of the PLCA, although the numerical values are correct except for the credit purchases. What would be the amount for credit purchases if the PLCA was to be written up correctly? 355,000 360,000 450,000 517,000Hider Company had a customer return merchandise purchased with cash with a sales price of $7,500. The cost of goods was $3,000. Hider refunded the cash to the customer. The journal entries to record the return, using the perpetual inventory system and assuming an adjusting entry was recorded for estimated sales returns would be:
- On June 1, Calumet Corp. paid $25,000 for inventory previously purchased on account. Which of the following statements is correct with respect to how this transaction should be shown on the transaction worksheet? Select one: a. The cash account will decrease and the deferred revenue account will decrease. b. The inventory account will decrease and the cash account will decrease. c. The cash account will decrease and the accounts payable account will decrease. d. The cash account will decrease and the retained earnings account will decrease. e. The cash account will increase and the accounts payable account will increase.The new bookkeeper forgot to record the sale of merchandise that was made to a customer on account with 20% profit. What impact does this have on the company’s books? Cash is understated/Accounts receivable is understated/Inventory is overstated/Income statement is understated Accounts receivable is understated/Inventory is understated/Income statement is overstated Cash is overstated/Inventory is understated/Income statement is overstated Accounts receivable is understated/Inventory is overstated/Income statement is understated Cash is understated/Accounts receivable is overstated/Income statement is understatedThe following information from Tiny Company’s first year of operations is to be used in testing the accuracy of Accounts Receivable. The December 31, 2015, balance is $28,300. (a) Collections from customers, $48,000 (b) Merchandise purchased, $74,000 (c) Ending merchandise inventory, $31,500 (d) Goods sell at 60% above cost (e) All sales on account Compute the balance that Accounts Receivable should show and determine the amount of any shortage or overage.