orres Corp. estimates its sales returns at the end of each month. On December 1, 2022, Torres Corp.’s “Sales Return Liability” account had a normal balance of $10,000. During December, the company had customer sales totaling $600,000 and actual returns of $12,000.   At the end of December, Torres estimates sales returns related to December’s sales will be $8,000.    Question: What should be the “Sales Return Liability” account balance on 12/31/22 after all entries have been made?

During 2018, its first year of operations, Hollis Industries recorded sales of $10,600,000 and experienced returnsof $720,000. Cost of goods sold totaled $6,360,000 (60% of sales). The company estimates that 8% of all saleswill be returned. Prepare the year-end adjusting journal entries to account for anticipated sales returns, assumingthat all sales are made on credit and all accounts receivable are outstanding.

Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of 2,987 units. It is estimated that warranty repairs will average $17 per unit sold, and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Hall should show warranty expense of a.$35,545 b.$0 c.$50,779 d.$15,234

During the month of March 2022, Turaco sole trader purchased goods to the value of N$12 000, of which a half (%) was sold for N$10 000 during May. In addition, rental and insurance for the month amounted to N$2 000 and N$500 were incurred, respectively. Compute the gross profit. Answer:

Determining Transaction Price and Refund Liability In January 2020, a retailer sells 200 paper shredders to customers for $100 each. The terms of the sales include a right for the customer to return a shredder within 180 days of the sale date. Based on historical trends, the retailer uses the expected value method and estimates a 40% probability that 16 paper shredders will be returned, a 45% probability that 18 paper shredders will be returned, and a 15% probability that 24 paper shredders will be returned. The retailer also concludes it is highly probable that there will not be a significant reversal of revenue recognized based on this return estimate. Thus, the agreement is a valid contract. Assume no actual returns in January 2020. Determine (1) the transaction price for the sale of shredders for January 2020, and (2) the refund liability balance on January 31, 2020. Round expected returns to the nearest whole unit in your calculations. 1. Transaction price $Answer 2. Refund…

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ABC Company prepares quarterly calendar interim financial reports. Entity sells goods and normally 8% of customers claim on their warranty. Provision in the first quarter was calculated 8% of sales to date which amounted to P 6M. second quarter sales amounted to 140% of first quarter sales. In third quarter, better data are available and revision of percentage is implemented which is increased by P 2.50%. Sales for the second quarter amounted to 70% of combined first and second quarter sales. In the fourth quarter, percentage of warranty is consistent with third quarter but total warranty expense to be recognized for the year should not exceed 9.00% of the total sales. Fourth quarter sales is 40% of third quarter sales. How much is the warranty expense for the fourth quarter interim financial statements?

CH Inc. is preparing its interim financial statements for the period ending March 31, 2021. The following relate to the transactions during the 1* quarter. a. Total sales for the interim period was P 1,000,000. b. Cost of sales was P 450,000. c. Poseidon Inc. is liable for 5% commission on its sales to its sales representatives and agents. No commission has yet been paid as of March 31, 2021. d. The allowance for doubtful accounts has a balance of P 5,000 as of January 1, 2021. The required balance as of March 31, 2021 is P 15,000. There were no write-offs or recoveries during the period. e. A building with historical cost of P 1,200,000 is being depreciated over 5 years using the straight-line method. f. Poseidon Inc. prepaid a one-year insurance on its assets for P 40,000 on January 1, 2021. g. Property taxes for 2021 amounting to P 26,000 was paid in January 3, 2021. h. Advertising costs of P 50,000 were incurred in February on promotional activities held on Valentine's Day. i.…

During computation, you may round your integer data to two decimal places and your percentages and present value factors to four decimal places.

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2024 with a refund liability of $420,000. During 2024, Halifax sold merchandise on account for $12,700,000. Halifax's merchandise costs are 60% of merchandise selling price. Also during the year, customers returned $619,000 in sales for credit, with $342,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year