Category: Uncategorized

Our book distribution division sells to national bookstores. O

Our book distribution division sells to national bookstores. O

Our book distribution division sells to national bookstores. O Our book distribution division sells to national bookstores. Our division allows for up to 25% of sales in returns. For the past 4 years, returns have averaged 20%. We record revenue based on revenue recognition when the right of return exists. Total Sales for 2012 $ […]

“Classify each of the following costs incurred by Deer Valley Kitchen as fixed, var

“Classify each of the following costs incurred by Deer Valley Kitchen as fixed, var

“Classify each of the following costs incurred by Deer Valley Kitchen as fixed, var “Classify each of the following costs incurred by Deer Valley Kitchen as fixed, variable, or mixed. a. Cooks salaries at a particular location relative to the number of customers. b. Cost of supplies (cups, plates, spoons, etc.) relative to the number […]

Balcom Corporation acquires a coal mine at a cost of $1,500,000. Intangible develop

Balcom Corporation acquires a coal mine at a cost of $1,500,000. Intangible develop

Balcom Corporation acquires a coal mine at a cost of $1,500,000. Intangible develop Balcom Corporation acquires a coal mine at a cost of $1,500,000. Intangible development costs total $360,000. After extraction has occurred, Balcom must restore the property (estimated fair value of the obligation is $180,000), after which it can be sold for $510,000. Balcom […]

Classical’s products carry a one-year warranty against manufacturer’s defect

Classical’s products carry a one-year warranty against manufacturer’s defect

Classical’s products carry a one-year warranty against manufacturers defects. Based on previous experience, warranty costs are expected to approximate 4% of sales. Sales were $2 million (all credit) for 2013. Actual warranty expenditures were $30,800 and were recorded as warranty expense when incurred. What would be the year end entry for this contingency? Classical’s products […]