You are the floor manager of Channel and have read the following learning outcomes: “Purchase Returns and Allowances”, “Customer Refunds and Allowances”, and “Merchandise Returns” (pg 149 – 155). As the manager, briefly explain the difference between

You are the floor manager of Channel and have read the following learning outcomes: “Purchase Returns and Allowances”, “Customer Refunds and Allowances”, and “Merchandise Returns” (pg 149 – 155). As the manager, briefly explain the difference between

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 4CYBK

See similar textbooks

Related questions

Q: Based on the following information, which of the following is closest to days' sales outstanding? •R...

A: Formula: Days sales outstanding = ( Accounts receivable / Revenues ) x 365 days

Q: 27 Statement I: When a partner sells an interest to a new partner at an amount that exceeds the cary...

A: The partnership comes into existence when two or more persons agree to do the business and further s...

Q: List and explain various functions of accounting.

A: Accounting is the process of recording financial transactions pertaining to a business. The account...

Q: If the imputed charge is charge is 15% and Webb wants to achieve a residu target of P2,000,000, what...

A: Introduction:- The following formulas used to calculate as follows under:- Residual income = Net inc...

Q: An equity analyst, has determined that the appropriate ratio of Enterprise Value to EBITDA (EV/EBITD...

A: Enterprise value is a valuation of a company based on market value and not the book value. The mark...

Q: Brandywine Corp. reported the following information for 2016 and 2017: Interest payable, 31 December...

A: Cash paid for interest = Beginning interest payable + interest expense - ending interest payable

Q: Millner Corporation has provided the following data from its activity-based costing accounting syste...

A: An activity cost pool is a collection of all the expenses connected with completing a certain busine...

Q: A company acquired a building, paying a portion of the purchase price in cash and issuing a mortgage...

A: Purchase of a building is an investing activity. Increase in the note payable is a financing activit...

Q: Gloria Detoya and Esterlina Gevera have operated a successful partnership for years, sharing profit ...

A: The partnership comes into existence when two or more persons agree to do the business and further s...

Q: The graph shows Global revenue for smart phones. A company has a 35% marketshare in 2019. What is an...

A: Here we will make use of the graph and first see what is the overall revenue for 2020.

Q: Duke Company transferred 5,500 units to Finished Goods Inventory during September. On September 1, t...

A: Number of units started and completed = No. of units transferred to Finished goods inventory - Begin...

Q: What is the weighted average cost of capital of Bulldogs Inc.?

A: Solution Concept The weighted average cost of capital is calculated when there are various sources o...

Q: Shareholders choose to invest in preferred shares because: a. preferred shares can always be conve...

A: Only convertible preferred shares will be converted into ordinary shares at the shareholder's option...

Q: 31. The classifications of a lease by the lessee are operating and finance leases. operating, sal...

A: A lease is a contract that describes the terms under which one party agrees to rent another party's ...

Q: Wildhorse Inc. manufactures an X-ray machine with an estimated life of 12 years and leases it to Cha...

A: calculation of lease receivable , sales price and cost price are as follows

Q: ABC Company has sales of $500,000, COGS of $250,000, operating expenses of $200,000, net income of $...

Q: Cash $ 14,890 Cash withdrawals by owner $ 930 Accounts receivable 12,820 Consulting revenue ...

A: The balance sheet shows the financial position of the company which includes the assets, liabilities...

Q: Dallas and Weiss formed a partnership to manage rental properties, by investing $164,000 and $246,00...

A: The sharing of profit and loss in accordance with the profit and loss sharing ratio.it completely de...

Q: 28. A business pays weekly salaries of $20,000 on Friday for a five-day week ending on that day. The...

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...

Q: The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to ...

A: 1)

Q: logical advances made the adop and medium-sized employers tter serve a diverse, multi-gene ment Stan...

A: A flexible benefits plan (FBP) refers to the plan which helps the employees to create structured and...

Q: On November 1, 2021, Mason Company issued P4,000,000 of 10-year, 8% term bonds dated October 1, 2021...

A: The accrued interest is the current liabilities for the business, which is due for payment but not p...

Q: Common shares (no-par value; authorized 60,000 shares; outstanding 21,000 sha Contributed surplus Re...

A: Stockholders are the Persons of entities whom the company issues its ownership rights in the form of...

Q: The AB division sells goods internally to the CD division of the same company. The quoted external p...

A: Cost Based Transfer Price is based on the total cost incurred. Cost plus 20% Transfer Price is based...

Q: Required: When compared to variable costing income, Gem's absorption costing income is

A: Solution:- Given, Inventory for Gem's sole product totaled = 6,000 units and 5,200 units Manufacturi...

Q: On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $83,010 in...

A: The cash flow statement is prepared to record the cash flow from various activities during the perio...

Q: On January 4, 2021, P Company purchased 75% interest in S Corporation for P300,000. S's recorded ass...

A: Consolidation statement In the consolidation statement parent company acquired the subsidiary compan...

Q: 2- What is the different between Account payable and Account receivable?

A: Accounts payable (AP) are money due by a company to its vendors, whereas accounts receivable are fun...

Q: Hartley Auto Supply delivers parts to a rea autoservice centers and is replacing its fleet of delive...

A: Given information is: Vehicle purchase cost = $25000 Operating cost per mile = $0.13 Useful life = 1...

Q: 2. The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company an...

A: Lease is the facility available to the lessee to use the asset of the lesser and pay certain rentals...

Q: Two jobs were completed with total costs of $183,000 and $105,000 respectively. They were sold to th...

A: A manufacturing overhead cost variance refers to the difference between the cost budgeted during the...

Q: Noel Stewart has estimated that the total fixed costs for his department are £10,000.He also estimat...

A: Solution Concept Fixed cost means the cost that does not change with the number of units produced Ma...

Q: The information in the statement of cash flows helps investors, creditors and others do all of the f...

A: The information in the statement of cash flows helps investors, creditors and other :- show the i...

Q: The following information relates to Automative Services on 30 June 2021. Vehicles 135,000 160,000 7...

A: Automative Services Balance Sheet At June 30, 2021 Assets Current Assets Cash at Bank ...

Q: West Company is a print shop that produces jobs to customer specifications. During January, Job #305...

A: Direct labor cost = 15 hours x P7 = P105 Overhead cost = 6 MHrs x P18 = P108

Q: PR 16-18 Statement of cash flows-indirect method OBJ. 2 The comparative balance sheet of Merrick Equ...

A: Cash Flow Statement: A cash flow statement is a financial statement that summarises all of the cash ...

Q: On January 4, 2021, P Company purchased 75% interest in S Corporation for P300,000. S's recorded ass...

A: When preparing consolidated financial statements, inter company transactions shall be eliminated to ...

Q: April Industries employs a standard costing system in the manufacturing of its sole product, a park ...

A: The actual unit price less the standard cost multiplying the number of actual units purchased is an ...

Q: What procedures must the auditor perform when gathering evidence related to contingencies? (Several ...

A: the liability that possibility arises because of happening of the future event such a liability is t...

Q: On 1/1/20, Bond Co issued 6,000 units of its $1,000 10-year 11% bonds. The bonds pay interest semi-a...

A: Interest payments are calculated on the issue price of the bond which is calculated as shown: Fac...

Q: When an optimistic approach to concurrency control is applied, it is common for transactions to take...

A: Introduction:- Concurrency control guarantees that accurate results are provided for concurrent acti...

Q: Use the following information to calculate total ending cash and equivalen Beginning Cash and Equiva...

A: A cash flow statement is a financial statement that outlines a company's cash inflows from ongoing o...

Q: 34. A lessee with a finance lease containing a bargain purchase option should depreciate the leased...

A: Lease: It implies to a contract whereby one party transfers it's right of using an asset to another ...

Q: The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. T...

A: Depreciation expense is not paid in cash. So the depreciation of $3,750 will not be included in the ...

Q: Production-volume variance formula

A: Variance: It implies to a difference between the actual and standard outcomes. If the actual outcome...

Q: 1. Emily recently graduated with a B.A. in economics and was offered a job with a small but growing ...

A: Accounting profit, also known as accounting profit or financial profit, is the net profit produced a...

Q: ou decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note: P...

A: The question is based on the concept of Annuities. Annuity refers to the series of equal payments or...

Q: All Things Brass produces brass handles for the furniture industry in a four-stage process -Mixing, ...

A: What is meant by equivalent number of units? In process costing, the product will pass to through th...

Q: On June 1, 2020, Straw Company acquired 20% equivalent to 20,000 shares of Berry Company for P3,000,...

A: Introduction:- A controlling interest in a corporation is one that owns enough voting stock shares t...

Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Purchase Returns and Allowances and Merchandise Returns.
Customer Refunds and Customer Allowances.

Explain the difference between FOB Shipping Point and FOB Destination.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

You are the floor manager of Channel and have read the following learning outcomes: “Purchase Returns and Allowances”, “Customer Refunds and Allowances”, and “Merchandise Returns” (pg 149 – 155). As the manager, briefly explain the difference between Purchase Returns and Allowances and Merchandise Returns. Customer Refunds and Customer Allowances.
Describe the data flow in the buying process that begins when the purchasing organization sends a check to a vendor to settle an invoice for goods bought.
The return of goods by a customer ( Sales Return ) should be credited in the ledger account of ? Select one: a. Sales account O b. Accounts receivable account O c. Purchase Return account O d. Sales Return account
In the revenue cycle (for sales on credit), a customer places an order for a certain product. Which step does not occur before shipping the goods to the customer? Check inventory availabilityPick and pack the goodsCheck customer creditBill the customerObtain the customer order
The operating cycle of a merchandiser with credit sales includes the following five activities. With merchandise acquisition as the starting point, arrange the events in the correct order. a. Prepare merchandise for sale b. Collect cash from customers on account c. Make credit sales to customers d. Purchase merchandise e. Monitor and service accounts receivable
Looking for an expert Accounting Tutor thank you TIPS:1. Get the Cost of Goods Sold(COGS) - compute for it, andyan yan. Compute for this first.2. The rest of the account titles, identify if it is revenue or expense. Then plot to income statement to get the net income Additional reference:SINGLE STEP APPROACH that your going to use
In the Purchasing Process - Level 0 Diagram, a data flow called "inventory's purchase requisition" most likely would be sent by the inventory management process to which of the following processes? Group of answer choices a. order goods and services b. receive goods and services c. determine requirements d. none of the above.
When goods are sold on credit the account of a customer is called : Select one: a. Purchases Return b. Account Payable c. Sales Return d. Account Receivable
Which document helps to ensure that the receiving clerks actually count the number of goods received?a. packing listb. blind copy of purchase orderc. shipping noticed. invoice
In the basic technology system, the inventory control clerk reviews the purchase requisition file to identify inventory needs. Explain how this file is created.
The entry to record the return of merchandise from a customer would include a debit to Sales credit to Sales debit to Customer Refunds Payable debit to Estimated Returns Inventory
If one of NetSolution's customers returns some merchandise that had been purchased on account (accounts receivable), NetSolutions will inform the customer that the return has been authorized as indicated by a _______ memo. Group of answer choices credit memo debit memo sales return memo sales memo