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You are watching: When goods are returned that relate to a prior cash sale

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Transcribed image text: suspect the agency uses the earnings strategy for revenue acknowledgment when goods are reverted in a saleable condition, that relate to a former cash sale, the Cash account will be credited. O accounts Receivable will be credited. O the Sales Returns and Allowances account have to not it is in used. Sales Returns and Allowances will certainly be credited, Windsor Manufacturing has net sales of $180000, cost of items sold that $144000, and also operating prices of $30000. The gross profit margin rounded come the nearest percent is O 20% O 17% O 3% O 80% Coronado firm recently do a $19500 acquisition from a major supplier Shipping prices were $320, terms FOB destination point. To record this purchase, Coronado agency will should debit the O cost of products Sold account because that $320. O Merchandise perform account because that $19820. O cost of goods Sold account because that $19820. O Merchandise perform account because that $19500. Current Attempt in development In a perpetual system, suspect the agency uses the earnings strategy for revenue recognition, the required entries to record the sale of merchandise for $970 on credit transaction for items costing the agency $560 would incorporate O a) a debit to cost of items Sold and credit to Merchandise Inventory for $560. O b) a debit to account Receivable and credit come Merchandise Inventory because that $970. C) a debit to accounts Receivable and also credit come Sales because that $970. O d) both a) and also c). A company shows the adhering to balances: $990000 Sales Sales returns and allowances cost of products sold Operating costs 240000 600000 75000 What is the gross benefit margin? O 20.0% O 60.6% O 80.5% O 39.4% If a agency has net sales of $232000 and also cost of products sold the $174000, the gross benefit margin is O 75.0%. O 100.0%. O 25.0%. O 12.5% suspect the firm uses the earnings approach for revenue recognition in a perpetual system, if the accounting records display an finishing inventory balance that $22600 and also a physical count shows a balance of $19800, the is vital to O debit expense of products Sold and credit Sales Returns and also Allowances because that $2800. O debit Sales Returns and Allowances and also credit was Inventory for $2800. O debit was Inventory and also credit expense of products Sold because that $2800. O debit expense of products Sold and credit merchandise Inventory for $2800. Making use of a perpetual list system, it Oriole's accountancy records show an ending inventory balance the $24700 and also a physical count shows a balance of $22700, it is necessary to O remove the missing inventory from its records. O debit its perform records. Purchase additional inventory. O credit cost of products Sold. Assume that Sheffield and also Concord use the earnings strategy for revenue recognition. Sheffield went back to Concord Inc. 5 damaged fuses. Concord accepted the return and issued a credit note for $260 to Sheffield because that the merchandise it had purchased top top account. To document this return, Concord's accountant have to debit Sales Returns and Allowances and also credit Cash because that $260. Debit Sales and also credit Cash because that $260. O debit Sales Returns and also Allowances and credit accounts Receivable for $260. O debit Cash and credit Sales because that $260. If a agency purchases inventory because that $170000 through terms 2/10n/30 and pays within the discount period, the lot of cash paid is O $175000. O $173400 O $166600 O $170000 Bonita company recently make a $10000 purchase from a major supplier. Shipping prices were $250, state FOB shipping point. To record this purchase, Bonita agency will need to debit the O Merchandise perform account for $10000. O expense of items Sold account because that $10250. O cost of products Sold account because that $250. Merchandise inventory account because that $10250.