Podcast
Questions and Answers
What accounts are affected when recording returned goods from customers at their sales price?
What accounts are affected when recording returned goods from customers at their sales price?
- Prepaid expenses, Depreciation
- Inventory, COGS
- Sales returns and allowances, Cash or Accounts receivable (correct)
- Sales discounts, Inventory
What is the purpose of the second entry when customers return goods?
What is the purpose of the second entry when customers return goods?
- Increase the owner's equity
- Close temporary accounts
- Update the Inventory account (correct)
- Record Sales discounts
What is recorded when customers pay early to take advantage of terms offered?
What is recorded when customers pay early to take advantage of terms offered?
- COGS
- Prepaid expenses
- Sales discount (correct)
- Sales returns and allowances
What is the main purpose of closing entries at the end of a period?
What is the main purpose of closing entries at the end of a period?
Which financial statement provides users with more information for decision-making?
Which financial statement provides users with more information for decision-making?
What differentiates the preparation of the balance sheet for merchandising companies from that of service companies?
What differentiates the preparation of the balance sheet for merchandising companies from that of service companies?
What is the net sales revenue for October 2012?
What is the net sales revenue for October 2012?
What is the gross profit for October 2012?
What is the gross profit for October 2012?
Why might the physical count of inventory differ from the book balance?
Why might the physical count of inventory differ from the book balance?
What account should be closed first in the closing entries process?
What account should be closed first in the closing entries process?
If the unadjusted balance of the Inventory account was $63,000 and the physical count was $61,900, what is the adjusting entry?
If the unadjusted balance of the Inventory account was $63,000 and the physical count was $61,900, what is the adjusting entry?
What happens to the Sales Discount in the calculation of Net Sales Revenue?
What happens to the Sales Discount in the calculation of Net Sales Revenue?
What was the total amount of Sales Revenue reported by Carolina Communications?
What was the total amount of Sales Revenue reported by Carolina Communications?
What is the total amount of Rockwell's Capital?
What is the total amount of Rockwell's Capital?
How much was the Accounts Payable balance reported by Carolina Communications?
How much was the Accounts Payable balance reported by Carolina Communications?
What was the total amount of Inventory mentioned in the financial statements?
What was the total amount of Inventory mentioned in the financial statements?
Which account represents a Sales Discount in the financial statements?
Which account represents a Sales Discount in the financial statements?
What was the total amount of Rent Expense reported by Carolina Communications?
What was the total amount of Rent Expense reported by Carolina Communications?
