a-retailer-returns-400-worth-of-inventory-to-a-manufacturer-and-receives-a-full-refund-what-accounts

Question

A retailer returns $\$ 400$ worth of inventory to a manufacturer and receives a full refund. What accounts recognize this return before the retailer remits payment to the manufacturer?
A. accounts payable, merchandise inventory
B. accounts payable, cash
C. cash, merchandise inventory
D. merchandise inventory, cost of goods sold

Puneet Prajapati · Accepted Answer

Okay, so we are going to understand the meaning. Lost credit production. Okay. And we will also understand that what are the neutral respects? Offsets drug addiction. What is the connection that involves drones? Foot? Oh, the jobs and services. Who customer. But that be made will be need later point in time. Okay. No. What does that mean? That that delivery of Georgians have? This is very take place in first place. Okay, Like the supplier will deliver goods and services to customers. Our customers will say that I will tell you in later, at later point in time. Okay, now what happened? Let&#x27;s suppose there is Mr Day. Who is Ah, business owner. Okay, who is a business one. However, there is Mr Mr X. Who is this? A play. So in almost every in the street, more in almost every industry except in case of servicing mystery. There is the The conviction matter on basis of credit is very, very popular Night. Let&#x27;s suppose Mr Expense applied the words Soviet growing example. Okay. However, to make understand distribution, give Mr Excellent supply goods. Gloves off. Let&#x27;s say $100 now. What happened? Mr even say Mr X That I will pay you regulate upon intact. Okay, if that will happen. No, No. After that, Mr Ray said What happened? That out of those words, let&#x27;s say out off regulars. Okay, out of hundreds, hundreds, then you nerds found with defective by Mr Okay. And units found to be detective No, in orderto regard that effect in orderto record that effect. What will happen, Mr A Will, Mr Day will give effect to two types of accounts. Okay, so first type of a cone will be ago speeding. Okay, maybe a ghost are We can interchangeably. We can order me to see Vegas. Okay. And second oneness stock. Because what happened after receiving the 100 units? So Mr A would have recorded 100 units on his books. But after fun finding any interest effective Mr Avery degrees its stock back then, units, because Spaniards. But you&#x27;re going crucifix. And therefore, after that, Mr it will have to pay now less then previously. Because Mr we will not be liable to pay for 10 minutes which found with defective. So that is why they will be decreasing craters. Also, craters are in this case is Mr X who has to be paid. Let me said so. Therefore, these accounts will be effective. Yes, in this transaction or what? I have said this example. Oh, good. Okay. So that so What We have derived. Okay, that matches with Joyce. Okay, So choice A is the correct solution. Okay, So stock and craters account will be effective if these transactions ville. Okay. Okay. So, Joyce A is the correct answer. That&#x27;s all for the solution. Thank you.

Puneet Prajapati · Answer

Okay. So to make understand the concept off said I am saying, Is that done? Okay, vee vill walk through an example. Okay, certainly more care. Do you? Okay, so it is Mr B. You always a gusto lift. However, there is a Mr Steve who is a supplier. No. What happens, miss? Just see supplied 13 units. Let&#x27;s say 1000 units, both housing dollars. Okay, that is the but Mr Is and that I will pay you in later created by in time. Okay, let&#x27;s it with environment. So I will draw these lines on the basis of credit. Make the environment within one month. The mountain will be okay. So I&#x27;ve been Thank you. That it credit basis transaction like delivery of goods has bean completed. Okay, but the market will be paired with involvement after the living. Now what happens then? Venda June, It&#x27;s reached two Mystery 100 juniors. Okay, 100 UNIX found defective. Now what happened, Mr Siegel? Not Of course. This is a basic comments and Mr C will not receive the amount of gains 100 units. Okay, so it will effect the account balance off $1000. That is actually recoverable from mystery. Okay, so the extent off 100 units because 100 units are defective. So betters who are the data is actually Mr T. These are decked out for Mr C because Mr has to pay for Mr C for the girls that has been driven publicity. Okay, No. What happens? There is also a transaction that will be affected or because they also account that will be affected, That this sale does by next. Because Mr E have been sword certain units. But now we&#x27;re so which force previously assailed election. It will now become a sale. Returned damage. So it will degrees down the sales off Mr CR&#x27;s. Okay, bye there. So because Mr C sold her 1000 units, but her dad units found because if no from $1000.100 units will be you&#x27;re not thick who give effect within that sense. Okay, so in the given example, we ever identified that vigil T ACOs will be identified or will be exacted if they&#x27;re given protection Bill. Okay, which we have Freeman Another example. Okay, so that back matches with Joyce. Okay, so try say the correct answer. However, deckers in accounts receivables can be used interchangeably. However, choice is the correct answer you can right now and what I&#x27;ve returned so far. OK, but Joyce a is the correct. So that&#x27;s all for our solution.

Puneet Prajapati · Answer

Okay, so we will understand the meaning. Love saves. They&#x27;re done. Okay. Better understand the meaning. C is to go. You win. Example ordered by that. We will understand that. How do you account for such challenge? So let&#x27;s suppose there is mystery. Okay? He&#x27;s a businesswoman, okay? And it is Mr C who is an estimate. Okay. Know what happens? Mr. He transferred 1000 units. Oh, dollars each. Okay. No, Mr E the this transaction. So after six transmittal goods, most of what we did follow with the collection after transfer Rose. How does anyone urged always to see Mr C said Louis area that I will pay you. I need to point in time. So Mr Lee said Okay, back, but still for I have generated a Decker&#x27;s off $1000. Who is it? Back down here. Mr. Sees a doctor here. Okay, because Mr es transferred 1000 units to Mr C. So Mr C has become now did this? No, After that, Mr A has also done sets. Okay, Because after selling 1000 consumers to see Mr A has made Mr see a doctor Buoyancy. Okay, that could kill him. So there are There isn&#x27;t a prolific cough, destroy religion, which is creating ordinators off $1000 along with that say&#x27;s generator. Well, what about $1000? No. After reaching off 1000 years to Mr Seeing what happens under units were found to be defective. No, Mr C has yet north bid. You must, Eddie, but Mr has refunded the about who? Mr C. Okay, like Mr, we will pay 4100 your instruments to see. Okay, that however, Mr C will be 400 years sold a net tomorrow will be adjusted. Okay, so, at last, Mr C will pay for 900 years. However, what happens that if this sales return will be, you can see if Mr C. Villard 100 units Tom, study that already we should be called us. Says Okay, but now what happens? This deck that amount this old sword district by that. So because if Mr A will not Mr Re has supplied 100 words that quite effective, actually. So it was hearing on. So does he, Mom? Less than previously. Well, that&#x27;s turned off 100 juniors, right? So that&#x27;s how you doing? Second. So they will be impacting doctors also as for this season, so you show the effect in sales. People use the arm since, and to show the effect conductors have you. So now we have a defined upper choice that matches choice E that which of these will be used? Okay, we&#x27;ll get dec effect. Most of all, Sailor done. And so doctors and come to this evil can deals interchangeably. So choice A is the correct answer. That&#x27;s all. Another solution.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand that how many times off but gazing mediums we have, like So how many mediums weekend initiate our chasing down their chins off its okay, All right. But it is not on either arm hits and unite both goods and services. Okay, so first up on begin. But she is any type off religion services on a cash basis, then on this is okay. So in terms off gas bases, there is a chimney production that, first of all, they will be delivery aubergines offices against Yes. Okay. Against cash. So that is what we have. Like, this is purchasing media ve vill or business. Incredible. Deliver emergency services to the customer and the customer will pay cash against the ability. Okay. I don&#x27;t think this is what happens. Then there is a delivery of goods and services. Okay. That is delivery of goods and services, Turkistan, the customer stays. I will make a mental. You&#x27;re depending that okay? Like it is also known expertise on traffic. Okay, But what happens when customer find something defective in the goods or services? Because the mother turns the Gordon&#x27;s up in this study supplier before making the payment know what happens if, if the actual purchase has been made has been made on it. Okay. A If the customer also turns the defective goods to the supplier, then what happened to accounts empty effected from those damages. Okay for partying most of all there decades ago. Okay. And 2nd 1 is sees you doing and launches. Okay. Why did this about? Because the purchase or sale has been made on credit. So that is why we will have effect contact as they come. And we will have effect on sales returning about launches because account 40 translate chin into stepped off, return off. Good return off defective fortunes of his sister supplier rebuild. They will be effect on sales. Ritalin allowances. Okay. No, As the current solution to our question here, I didn&#x27;t be fired that Joyce D is correct. Okay, because that Joyce is containing who? Two important accounts that will be affected. Yes. The purchase will you meet don&#x27;t credit for so far, and that defective goods really be returned by customers for the suppliers. Okay, so you can write down. But I have returned so far, okay? For making for making the concept to get our choice to use the correct answer. Thank you.

Puneet Prajapati · Answer

Okay, so we will understand the meaning. Rated save forward by that revealing this dandy. Do you get expects? Okay, so Italy first. Who? The transaction involving movement off goods and services. Oh, where? But the payment will be made That leader or in due time. Okay, so we have return the technical definition that it refers to movement off books. However, we will understand this to an example, so but you can reflect the definition for future different sorts. Okay, so So that is why I usually write the definition first, then example of us now. Alexis Opponent dated mystery always up is this order. And it is Mr is there. Okay, now what happens then? Mr. E Supplies and emergency services. Okay. Glad to support $1000. No. What happens, Mr Say Mr. Z or Mr Sex Sector Mystery that I will be. But then one money. Okay. The payment will not be made immediately, so back becomes the instead. Software did see Okay. Say long pregnant basis. Know what happens to regard that connection? They will be do items, defector. Okay, First of all, Decker&#x27;s no who are the victors because on the what sins From whom the amount of dissident. So as in the current keys, Mr Z Visa Decker for Mr Okay. So you can write on your books. However, I will also make a decision. Okay, so Mr said, Well, we&#x27;re doctor for Mr Okay, because the amount is it recoverable from misters Zach. OK, because he has promised to pay with environment. But after women. Okay. And second, is this a lighter? That is the actual because when Mr Isolde, certain groups of $1000 to Mr Zane. So they will be the revenue which is being generator okay in farmer sale of goods and services to Mr Said. So that is why do accounts will be affected? Must afford necklace thinking What is C? However, that matches with forget. So that matches with our choice e However, council civilian doctors can be used interchangeably, okay, and sale will remain seen. So I see is the correct answer. However, you can write what I have been so far. But Joy sees the correct answer as we have derived. That&#x27;s all

Puneet Prajapati · Answer

Oh, okay. So, Electors understand that. How many times upper cheese looks by How many type off medians? Weekend perches, Theodore, material from the manufacturers. Okay, so but jeez, mediums. Okay, so first off, or they actually do mediums for purchasing any type of vomited from the supplier. First of all, on cash business, that is the most popular method. Okay, a lot of most popular, but yes, 30% off business entity will follow the cash business. OK, and 2nd 1 is crowded places it is the most used. But Okay, now what happened? Let&#x27;s suppose there is a person. Mr. Okay, So, Mr Repurchases Raw material from his supply it, Mr C. Okay, So, Mr C cells Rahmati in our Tim Roemer TV in and done, Mr. B gifts $500. Ask cash for payment for no material. This is the basic collection we have. However, the angry who regard this time action will be will be. What will the American dies in victory? A code habit? Who? Magical. Okay, this accounting entry has bean generalized. As for the Golden Dome self accounting. Okay, So via via great good cash. You sure that there is a reason a six and Lybia Deputed. The market dies in one vehicle because there isn&#x27;t a reason. Insects Okay, no legs Come to ever popular method of purchase. Hear what he had ve vill. So we even purchased it on material from Mr See. But all tenet. Okay, now what happened? Ve vill off course never to market rising when humans again By because there isn&#x27;t a reason that sex there is increasing stock. However, now we will go now. Even Credit de candidatos tonight. Those for Mr C like we have created a liability. Okay, so So against the cash payment we have done in cash matter, we have used to greater theocratic name of greater Okay, so we will pay Mr C in later bonding. Okay, so the counting entry, William Arkin marking dies and then take all the way to laters. Okay, So these are the columns? No. As for the got in solution, the did I that we have derived that who workouts will be needed to record a journal entry for the liberties that matches with the solution. The just Joyce be in the civil case, okay, That doesn&#x27;t work in merchandising entry and a conscript so constable indicator can be used interchangeably so you can go. I don&#x27;t want the evidence. So far, it comes off. Okay, but no choice. B is the correct answer, okay?

Problem

A retailer obtains a purchase allowance from the …

Problem 11 Medium Difficulty

Answer

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Principles of Accounting Volume 1: Financial Accounting

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting