need help solving #13 please

20. receipt of the balance due with 9. As the end of Smyle Company's fiscal year ap- proached, it became clear that the company had con- siderable excess inventory. Marvin Ross, the head of marketing and sales, ordered salespeople to "add 20% more units to each order that you ship. The custom- ers can always ship the extra back next period if they 21. I decide they don't want it. We've got to do it to meet this year's sales goal." Discuss the accounting implications of Marvin's action. 10. To encourage bookstores to buy a broader range of book titles and to discourage price discounting, the pub- lishing industry allows bookstores to return unsold books to the publisher: This results in very significant returns each year: To ensure proper recognition of revenues, how should publishing companies account for these returns? 11. Goods costing $1,900 are purchased on account on July 15 with credit terms of 2/10, n/30. On July 18, the pur- chaser receives a $300 credit from the supplier for dam- aged goods. Give the journal entry on July 24 to record payment of the balance due within the discount period. 12. Scribe Company reports net sales of $800,000 gross profit of $560,000, and net income of $230,000. What are its operating expenses? 13. Mai Company has always provided its customers with payment terms of 1/10, n/30. Members of its sale force have commented that competitors are offering customers 2/10, n/45. Explain what these terms mean, and discuss the implications to Mai of switching its payment terms to those of its competitors. In its year-end earnings announcement press re- lease, Ransome Corp. announced that its earnings in- creased by $15 million relative to the previous year. This represented a 20% increase. Inspection of its income statement reveals that the company reported a $20 mil- lion gain under "Other revenues and gains" from the sale of one of its factories. Discuss the implications of this gain from the perspective of a potential investor. 15. Identify the distinguishing features of an income state- ment for a merchandising company, 14. - BRIEF EXERCISES pute missing amounts in heme BE5-1 Presented here are the T