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Suppose that ABC overstates its ending inventory for 2018. What effect will this have on the reported amount of cost of goods sold for 2018?C. Understate cost of goods sold.Cost of goods sold = beginning inventory + purchases during the period - ending inventory. If ending inventory is overstated, then COGS are understated. The adjusting entry required when amounts previously recorded as deferred revenues are earned by providing goods or services to customers includes:B) A debit to a liability.Deferred revenues are liabilities with credit balances, therefore, when they are actually earned, they must decrease with a debit. Sales revenue $350,000Accounts receivable $280,000Ending inventory $230,000Cost of goods sold $180,000Sales returns $50,000Sales discount $20,000 Given the information in the above table, what is the company's gross profit?A) $100,000.Gross profit = net sales revenue - COGSnet sales revenue = total sales revenue - sales returns - sales discountsIf your employer declares bankruptcy, this can have a major effect on your pension if you are in aC) Neither PlanAll types of pension plans are currently protected and only a small portion of very high income plans are affected in case of bankruptcy (generally plans that hold over $1 million or those plans with contributions higher than $54,000 per year).
your timeExplanation:you didn't list the answers but if I was to take a guess I would say charge for time
Revenue Recognition PrincipleAn accounting principle that states that a company should record revenues when they provide goods and services to customers.
$75000Explanation:Net revenue is simply defined as the total amount of money that an economic entity such as an individual or firm makes from sales minus the direct expenses. The net revenue accounts for the refunds, price reductions, and the direct expenses. From the question, we've been informed that Wolfpack, Inc.provides goods and services to customers during the year totaling $100,000 and that during the year, customers are granted discounts, returns, and allowance of $20,000. Lastly, Wolfpack estimates that an additional $5,000 in discounts, returns, and allowances will occur next year.The amount of net revenues Wolfpack will report in its current-year income statement will be:= $100,000 - $20,000 - $5,0000= $75,000
$75,000 Explanation:According to matching concept the revenue and its related expenses should be recognized in the same period in which they incur. In this question discount related to current years sales are expected to be given in the next year so, it should be recognized now because the relevant revenue recorded this year.Service Revenue $100,000Discounts, returns, and allowance ($25,000)($20,000 + $5,000) Net Revenue $75,000
$75,000Explanation:Matching Concept Requires that the Expense should be recorded in the same period in which it;s corresponding income is recorded.The $5,000 Discount is related to the current years revenue which is estimated to be given in the coming year. So, this discount should be recorded in the current period.Net revenueRevenue for the period $100,000Less: Granted discounts, returns, and allowance $20,000Less: Estimated Discount given in next year $5,000 Net Revenue $75,000
B. $ 75000Explanation:Given thatGross sales and services = 100000Discounts = 20000Estimated additional discounts from this year sales = 5000Recall thatNet revenue = Gross Revenue/Sales - (Sales returns, discounts and allowances)Therefore, Net revenue = 100000 - 20000 - 5000 = 75000Thus, Net revenue for current year = $75, 000.
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