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 2020 with an allowance for sales returns of $200,000. During the year, Halifax sold merchandise on account for $12,000,000. This merchandise cost Halifax $8,520,000. Also during the year, customers returned $450,000 in sales for credit. Sales returns, estimated to be 4% of sales, are recorded as an adjusting entry at the end of the year. Question Journal Entries for sales returns in 2020 would include a credit to Inventory of $319,500 O a credit to Cost of Goods Sold of $310,500 a debit to Accounts Receivable of $450,000 a credit to Sales Returns of $450,000 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 2020 with an allowance for sales returns of $200,000. During the year, Halifax sold merchandise on account for $12,000,000. This merchandise cost Halifax $8,520,000. Also during the year, customers returned $450,000 in sales for credit. Sales returns, estimated to be 4% of sales, are recorded as an adjusting entry at the end of the year. Question What is the yearend balance in allowance for sales returns after the adjusting entry is recorded? $480,000 $450,000 O $230.000 $200,000 QUESTION 3 Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2016, not credit sales totaled $4,200,000, and the estimated bad debt percentage is 1.25%. The allowance for uncollectible accounts had a credit balance of $40,000 at the beginning of 2016 and $42,000, after adjusting entries, at the end of 2016. Question What is bad debt expense for 2016? $40,000 $42.000 $50.500 O $52,500 Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2016, net credit sales totaled $4,200,000, and the estimated bad debt percentage is 1.25%. The allowance for uncollectible accounts had a credit balance of $40,000 at the beginning of 2016 and $42,000, after adjusting entries, at the end of 2016. Question What is the amount of accounts receivable written off during 2016? $40,000 $42.000 $50,500 $52,500 O QUESTION 5 2 points On June 30, 2016, the Esquire Company sold some merchandise to a customer for $30,000 and agreed to accept as payment a noninterest bearing note with an 10% discount rate requiring the payment of $30,000 on March 31, 2017. The 10% rate is appropriate in this situation Question Journal entries for Esquire for 2016 would include: O a credit to Sales Revenue of $27.750 a debit to Discount on Notes Receivable of $2.250 a credit to Sales Revenue of $27.000 a debit to Discount on Notes Receivable of $3,000 QUESTION 6 LUUN ALU E 23662261&stepanu On June 30, 2016, the Esquire Company sold some merchandise to a customer for $30,000 and agreed to accept as payment a noninterest bearing note with an 10% discount rate requiring the payment of $30,000 on March 31, 2017. The 10% rate is appropriate in this situation Question What is the effective rate of interest for this note? 8.1% 10.0% 10.4% 10.8% QUESTION 7 On January 1, 2016, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright received a note requiring payment of $525,000 by Elmira on December 31, 2018. The effective interest rate is 6% Question Journal entries for Wright for 2016 would include: a debit to Discount on Notes Receivable of $84,200 a credit to Sales Revenue of $525.000 O a credit to Discount on Notes Receivable of $84.200 a credit to Notes Receivable of $525,000 QUESTION & 2 points On January 1, 2016. Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright received a note requiring payment of $525,000 by Elmira on December 31, 2018. The effective interest rate is 6% Question Journal entries for Wright for 2016 would include: a debit to Discount on Notes Receivable of $26,448 debit to interest Receivable of $26,448 a debit to interest Revenue of $26,448 none of the above QUESTION 2 points are Samuelson and Messenger (S&M) began 2018 with 100 units of its one product. These units were purchased near the end of 2015 for $25 each. During the month of January, 100 units were purchased on January 8 for $25 each and another 150 units were purchased on January 19 for $30 each. Sales of 125 units and 100 units were made on January 10 and January 25, respectively, S&M uses a periodic inventory system. Question Ending Inventory using the FIFO approach would be $5,750 56,375 $9,125 13.750 ANAR de las