Goods and services are designed to satisfy wants and needs. In economics, goods are those that satisfy human needs and provide utility, such as a buyer purchasing a nice product.
It is customary to distinguish between transferable and non-transferable services. Both goods and services can be classified as these things. Services are ethereal in nature, whereas products are concrete in the sense that they exist in the physical world and can be touched. Commodities and services are both designed to be helpful and gratifying to the consumer. A service is defined as a "(intangible) act or usage for which a consumer, business, or government is willing to pay."
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leases with a term of one year or more are required to be in writing according to the california statute of .
Leases with a term of one year are to be in writing according to the California statute of frauds.
A verbal agreement may be used to construct a lease with a term of no more than one year. All leases, including those with monthly periods, should be reduced to writing for clarity and to lower the likelihood of controversy both during the lease term and after the tenant has surrendered the premises. According to California's Statute of Frauds, a lease must be in writing.
It has to be in writing if it has a term of more than one year or one that expires more than one year after the agreement is made. A lease with a term of ten months that starts three months after an agreement is reached is an illustration of a lease that must be in writing if it is less than a year long.
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the western capital growth mutual fund has: total assets $ 837,000,000 total liabilities $ 20,200,000 total number of shares 40,000,000 what is the fund's net asset value (nav) per share?
The fund's net asset value (nav) per share is 30.95 net asset value.
What is the net asset value?When a bank's price is provided by a trader or online financial portal, the net asset value for a share (NAVPS) of vehicle is also provided. Although NAVPS is determined only once each day, and the worth of the property acquired by a company may alter each day, this number is different from the firm's market price.
Total assets are $ 837,000,000
Total liabilities are $ 20,200,000
The total number of shares is 40,000,000
The net asset value formula is computed as
Net asset value = (assets - liabilities) / total shares
= (750,000,000 - 7,200,000) / 24,000,000
= 30.95 net asset value
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how do mergers and acquisitions differ? multiple choice question. a merger is when two firms are forced to join together; an acquisition is when two firms join willingly. a merger is when two firms join together; an acquisition is when more than two firms join together. a merger describes the domestic takeover of a firm, while an acquisition describes the international takeover of a firm. a merger describes the joining of two independent companies, while an acquisition describes the purchase or takeover of a firm.
A merger unites two businesses into a single, entirely new company, whereas an acquisition includes one firm buying another without forming a new organization. This is the primary contrast between a merger and an acquisition.
A merger occurs when two separate organizations come together to create a single, new entity. On the other side, an acquisition occurs when one entity is taken over by another. Mergers and acquisitions may be carried out to widen a company's client base or boost its market share in an effort to improve shareholder value.
An acquisition is when one firm (the acquirer) purchases and takes over the operations of another business (the acquiree), as opposed to a merger, which takes place when two or more businesses combine to form one corporate entity (the acquired).
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which of the following statements are true? group of answer choices a bank's assets are its sources of funds. a bank's liabilities are its uses of funds. a bank's balance sheet shows that total assets equal total liabilities plus equity capital. a bank's balance sheet indicates whether or not the bank is profitable.
All of the statements are true. A bank's assets are its sources of funds.A bank's liabilities are its uses of funds.A bank's balance sheet shows that total assets equal total liabilities plus equity capital.
A bank balance sheet is a financial statement that shows the bank's assets, liabilities, and equity capital. The balance sheet is used to determine whether the bank is profitable. The assets of the bank are its sources of funds, and the liabilities of the bank are its uses of funds. The equity capital of the bank is the difference between the assets and the liabilities. The balance sheet shows that total assets equal total liabilities plus equity capital.
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use the information in the table about the mythical kingdom of ruritania to answer the questions. answers should be percentages rounded to one decimal place. year gdp (billion krone) working age population (millions) labor force (millions) workers employed full time (millions) 2012 4000 48.0 38 36 2013 5000 52.8 38.38 36.8 2014 4204 58.1 38.76 34.6 2015 4308 63.9 39.15 34.6 what was the labor force participation rate in 2013? labor force participation rate in 2013: % what was the labor force participation rate in 2015? labor force participation rate in 2015: %
According to The Economics Daily's analysis of data from the U.S. Bureau of Labor Statistics, the labor force participation rate fell to 62.4% in September 2015.
Explain about the labor force participation?
The rate of labour force participation is calculated by dividing the labour force by the total number of people who are working-age. The working age population ranges in age from 15 to 64. This statistic is broken down by age and expressed as a percentage of each age group.
Demographic factors like sex, birth year, education, marital status, and the presence of young children at home affect people's labor force participation differently.
Researchers have identified a number of factors that contribute to low labor force participation. Briggs (2021) lists factors including daycare shortages, excessive short-term savings, and changed work choices as drivers of the decline in labor force participation.
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andy takes out a 10-year loan of l, which he repays by the amortization method at an annual effective interest rate of i . andy makes payments of 1000 at the end of each year. the total amount of interest repaid during the life of the loan is also equal to l. calculate the amount of interest repaid during the first year of the loan.
The amount of interest repaid by the amortization method during the first year of the loan was $755.
Loan amount = (Payment Amount) × a n|i
L = 1000a10|i
Total interest = sum of the payments - the amount of loan = (10)(1000) - 1000a10|i
a10i = 5, i = 15.1%
Interest in first year = 1000 (1 - v10) = 755
Amortization is an accounting technique that is used to reduce the book value of a loan or an intangible asset on a regular basis over a set period of time. When it comes to loans, amortization is the process of spreading out loan payments over time.
Amortization is commonly used to describe the process of reducing the value of a loan or an intangible asset.
Lenders, such as financial institutions, use amortization schedules to present a loan repayment schedule based on a specific maturity date.
According to the matching principle of generally accepted accounting principles, intangibles are amortized (expensed) over time to tie the cost of the asset to the revenues it generates.
Negative amortization occurs when loan payments are less than the accumulated interest, causing the borrower to owe more money rather than less.
Most accounting and spreadsheet software include functions for automatically calculating amortization.
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______ are important because they provide utilities to consumers and have a significant positive impact on the economy.
Retailers are important because they provides utilities to consumers and cause a significant positive impact on the economy.
A retailer is an individual or business that sold goods. Retailers typically purchase their goods from manufacturers. They purchase goods from producers or wholesalers and then offer them in modest quantities to clients. One method of adding value is through consumer utilities which have a positive impact on the economy.
Between manufacturers and consumers, retailers play an important role. They serve as the last point of sale and are essential to the whole supply chain. They actually provide services to wholesalers and customers alike. The consumer is the most crucial retail concept to understand; they should be at the core of your organization and the subject of everything you do.
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how would an economist describe concerns related to income distribution and foreign-owned public debt?
An economist would describe concerns related to income distribution and foreign-owned public debt as substantive.
The primary burden of the debt is interest payments. The distribution of income is affected by debt repayment. Income disparity will likely worsen if working taxpayers are required to pay interest to the bondholders, who are primarily wealthier groups. These concerns are referred by the economists as substantive issues.
Large debts and high interest rates can increase tax burdens and reduce taxpayer incentives to work, save, and invest because interest must be paid from tax revenues. More than in the past, a larger amount of the debt is owing to foreigners, which adds to the burden because payments must be sent outside of the country. However, the issue is mitigated by the fact that Americans also own international bonds.
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the allowance method of estimating uncollectible accounts receivable based on an analysis of receivables shows that $877 of accounts receivable are uncollectible. allowance for doubtful accounts has a debit balance of $174. the adjusting entry at the end of the year will include a credit to allowance for doubtful accounts in the amount of
The receivable balance in each of the aging categories is multiplied by a reserve rate to determine the allowance for uncollectible accounts (see table below). Older receivables have a greater reserve rate since there is a lower likelihood that they will be recovered.
Which two techniques are used to estimate the provision for uncollectible receivables?The two most popular methods for estimating uncollectible accounts are the accounts receivable aging approach and the percentage of sales method.
How does writing down uncollectible accounts receivables when utilizing the allowance approach effect the accounts on the?According to the allowance approach, a written-off account will cause the allowance for doubtful accounts to increase and the net accounts receivable to fall. The net accounts receivable will therefore stay the same.
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the best supplier candidates for supplier relationship management (srm) include all of the following except? the best supplier candidates for supplier relationship management (srm) include all of the following except? suppliers that provide lesser quantities of a crucial products/services developmental suppliers that need to make improvements preferred suppliers suppliers that provide high volumes of products or services
The best supplies candidates for supplier relationship management include development supplier that need to make improvement
Alternatives A, B, and D will not be accepted as the right response since developmental suppliers are expanding companies looking to exert more influence in the industry and may do so in the near future. In light of all the available options, this may therefore be the best choice. Relationship management is a tactic used by organizations to keep their audience engaged on a regular basis. This management might take place between a company and its clients (B2C) or between a company and other companies (business to business [B2B])
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period 900,000 units completed and transferred out 885,000 ending work in process inventory 90,000 80% 30% production cost information for the assembly department follows. beginning work in process direct materials $ 134,400 conversion 45,900 $ 180,300 costs added this period direct materials $ 3,693,600 conversion 2,690,100 $ 6,383,700 calculate the number of units started and completed this period for the assembly department.
Costs of units started out and completed: you will take the equivalent gadgets calculated for devices began and carried out x the fee per equal unit for materials, labor and overhead (or conversion).
The sum of these 3 will be the value of gadgets accomplished and transferred which is additionally known as value of items manufactured.
What is supposed with the aid of the phrase units started and completed?5. The gadgets commenced and achieved in a duration are calculated as the whole unitscompleted throughout the length minus the gadgets that had been in the starting inventory.
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https://brainly.com/question/24050722#SPJ4after helping the candy seller erect his stall in the plaza, to what realization did the shepherd boy come?
Santiago the shepherd boy comes to the realisation that the candy vendor chose his line of work because it fulfils his personal legend or makes him happy.
Who is Santiago ?In The Alchemist, Santiago, a shepherd lad from a tiny hamlet in Andalusia, takes the lead. He is driven, brash, and interested to discover as much as he can about the world.
While Santiago strains to kill the large fish because it is noble and beautiful, he also loves the sea for everything it has given him. Like the bullfighter and the bull, he establishes a bond with the fish based on what he believes to be mutual respect.
Santiago's character emerges throughout the novella as jovial, focused, assured, courageous, and upbeat. He has gone eighty-four days without catching a fish, yet he is in no way discouraged. Instead, he makes the decision to cast further offshore in the hopes of landing a big fish.
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discuss the issue of centralization versus decentralization as it applies to the purchasing function. what are the advantages of centralized purchasing organizations? what are the disadvantages of centralized purchasing?
Centralized purchasing becomes more crucial as a company expands. Businesses frequently pay more as a result of their ineffective processes when they have a decentralised purchasing structure where separate departments are in charge of their own purchasing.
On the other hand, centralised firms run their purchasing processes more effectively since they have a procurement department of their own. Sometimes a small company doesn't need a whole department with many employees, only a purchasing or procurement manager.
A completely centralised organisation or a center-led organisational structure are both examples of centralised purchasing. For the entire company, the purchasing department creates standard operating procedures and purchasing pause rules. In a totally centralised structure, the purchasing department manages all purchasing responsibilities from a home office or headquarters for activities for every department or division. The purchasing department creates purchasing rules and standard operating procedures in a center-led organisation, but each division or department is still free to follow its own methods.
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in 2022, theo, a single taxpayer, operates a sole proprietorship in which he materially participates. his proprietorship generates gross income of $320,000 and deductions of $600,000, resulting is a loss of $280,000. the large deductions are due to the acquisition of equipment and the use of immediate expense and additional first-year depreciation to deduct all of the acquisitions. what is theo's excess business loss for the year? (the maximum amount of losses that were able to deducted in that year was $270,000/$540,000 (mfj)).
Due to his single status, the taxpayer will benefit from the threshold amount, In light of this, Total Excess Business Loss $ (30,000).
Is the IRS a part of the government?One of the most effective tax administration agencies in the world is the IRS, a division of the Treasury Department.
According to the IRS's (International Revenue Services) definition of company excess loss,
The total deduction (-) The taxpayer's yearly gross income (-) $250,000 is the threshold amount for all taxpayers, excluding married people.
excess business losses overall
In this case, gross income is $320,000 and deductions are $600,000, making the total deduction $600,000. (-) ($320,000) is the taxpayer's total year income (-) $ as the threshold (250,000)
Excess business loss overall $ (30,000)
Due to his single status, the taxpayer will benefit from the threshold amount.
In light of this, Total Excess Business Loss $ (30,000).
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the support department costs allocated to producing departments are assigned to individual products through the use of a. departmental overhead rates. b. a direct material cost per unit. c. plantwide overhead rates. d. a direct labor rate per hour.
Departmental overhead rates are used to assign the support department expenses that are given to the producing departments for specific goods. The right response in this case is option A.
The cost rate for each department in a factory manufacturing process is known as the departmental overhead rate. When distinct departments carry out certain actions to accomplish the end process, the departmental overhead rate varies at each stage of the manufacturing process.
Divide the indirect expenses by the direct costs, then multiply the result by 100 to get the overhead rate. A 20% overhead rate indicates that 20% of sales are spent on the creation of goods or the provision of services. The efficiency and increased earnings are indicated by a decreased overhead rate.
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using the allowance method, which is the correct adjusting journal entry to record bad debt expense? multiple choice question. debit bad debt expense and credit accounts receivable debit allowance for bad debt expense and credit bad debt expense debit bad debt expense and credit allowance for doubtful accounts debit bad debt expense and credit sales revenue
Using the allowance method, debit bad debt expense and credit allowance for doubtful accounts is the correct adjusting journal entry to record bad debt expense.
Debt is a responsibility that requires one birthday party, the debtor, to pay cash or other agreed-upon value to any other birthday celebration, the creditor. Debt is a deferred charge, or collection of bills, which differentiates it from a direct purchase.
Debt may be truly understood as the quantity owed by means of the borrower to the lender. Debt is the amount of money that is borrowed for a sure time period and is to be returned alongside the interest. the quantity in addition to the approval of the debt depends upon the creditworthiness of the borrower.
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the turkish lira lost about 40 percent of its value against the u.s. dollar in the first part of 2018. which type of exchange rate system does turkey follow?
Turkey follows a floating exchange rate system.
A floating exchange rate mechanism is used in Turkey.
A currency system, also referred to as an exchange rate system, describes how the native currency's value is determined in respect to other currencies. A nation's economic plan must carefully consider the choice of its monetary system.
A country's currency's value is decided by the foreign exchange market based on supply and demand in relation to other currencies when it has a floating exchange rate. In contrast, a fixed exchange rate is one where the government controls the rate completely or substantially.
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precious has a 10-mile commute each morning that is usually a fairly pleasant 15-minute drive. next week, the highway department began a major construction project that will cause precious to experience delays, detours, and slowdowns during her commute for the next 6 months. her stressor would be considered
Her stressor would be considered a hassle. For six months, she will struggle because she has to change her route.
What is a stressor?A stressor is a chemical or biological agent, environmental factor, outside stimulation, or event that is thought to put an organism under a hassle condition. In terms of psychology, a stressor might be situations or occurrences that people may view as demanding, difficult, or endangering their personal safety.The following situations or things could cause a hassle response: external stressors (hypo or hyper-thermic temperatures, elevated sound levels, over-illumination, overcrowding) daily stress' incidents (e.g., traffic, lost keys, money, quality and quantity of physical activity) Changes in life (e.g., divorce, bereavement) Occupational stressors a stressors involving chemicals (e.g., tobacco, alcohol, drugs) stressor in societyTo learn more about stressor from the given link:
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which of the following is a true statement? a) for purposes of the deduction for educational interest, expenses do not include expenses for room, board, and travel. b) for purposes of the deduction for educational interest, qualified education expenses are those paid for the education of the taxpayer, the taxpayer's spouse, or the taxpayer's dependent. c) the maximum deduction for interest expense on qualified education loans is $6,000. d) a penalty paid for prematurely withdrawing a certificate of deposit or similar deposit is deductible from agi as an investment expense. e) all of these choices are false.
For purposes of educational interest deduction, qualified education expenses are paid for taxpayer education, the taxpayer's spouse, or the taxpayer's dependent.
Tuition and fees, including other necessary course costs, are considered acceptable educational expenses if they are incurred in connection with the enrollment or attendance of the taxpayer, the taxpayer's spouse, or the taxpayer's dependent at an eligible educational institution. Additionally, suitable payments are made to accredited state tuition programmes.
Any scholarships, fellowships, employer-sponsored educational assistance, and other tuition discounts are deducted from qualified expenses. The same tax year as the redemption of eligible bonds is when qualifying costs must be incurred. Therefore, eligible education costs are those incurred for the taxpayer, the taxpayer's spouse, or the taxpayer's dependent's education for the purposes of the deduction for educational interest.
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what is a breadwinner
trabalho ou instrumento de trabalho que garante a subsistência do trabalhador; ganha-vida
seaside industries issues a bond with a stated interest rate of 10%, face amount of $50,000, and due in 5 years. interest payments are made semi-annually. the market rate for this type of bond is 8%. what is the issue price of the bond (rounded to nearest whole dollar)?
The Price of the bond is $54,055.43.
Given in the Question:
Face value : $50,000
state rate : 10%
term : 5 years, semi-annual
market rate : 8%
Price of Bond = (Present value of face) + (Present value of coupons)
Present face value = 50,000/1.04¹⁰
Present face value = $33,778.20
Coupon payments:
Coupon payments is given as
annual payment = 10% of 50,000 = $5,000
semi - annual payment = ¹/₂ × $5,000 = $2,500
Present value of coupons = 2,500/0.04(1 - 1/1.04¹⁰}
Present value of coupons = $20,277.23
Price of Bond = (Present value of face) + (Present value of coupons)
= $33,778.20 + $20,277.23
= $54,055.43
Hence, the price of bond is $54,055.43
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in computing the consumer price index, a base year is chosen. which of the following statements about the base year is correct?
In computing the consumer price index, a base year is chosen. The correct answer is option c- The value of the consumer price index is always 100 in the base year.
How should a Price Index base year be chosen?
The year when an index is set to 100 is known as the base year. Indexes are employed while calculating macroeconomic figures like inflation or economic growth rates. The government's statistical agencies will select a basket of commodities and set its value to 100 for a base year in order to track price changes.
When comparing measurements of a commercial activity, economic, or financial index, a base year is used. For instance, 2016 is the base year or the first year in the specified time frame when calculating the inflation rate between 2016 and 2021.
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a company sells backpacks, when the backpacks are purchased from the supplier (but not sold yet) this would be recorded as:
Merchandise Inventory falls within the prepaid expense category for a merchandising organisation since we purchase inventory in advance of using (selling) it.
As it is used, we record it as an asset (merchandise inventory) and an expense (cost of products sold). The cost of completed goods (COGS) that a inventory or wholesaler has available to sell to its customers during a certain accounting period is referred to as merchandise inventory. Merchandise inventory for a bookshop would comprise the cost of the books or magazines for sale. Merchandise inventory is the balance-sheet account that represents the total amount spent for things that have yet to be sold.
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when a product is offered in a foreign market, but cultural differences slow down the diffusion process, it would most likely be attributed to low levels of
A product is offered in a foreign market, but cultural differences slow down the diffusion process, it would most likely be attributed to low levels of Compatibility.
An essential first step in adapting a product to a overseas marketplace is to decide the diploma of newness as perceived through the supposed marketplace. The that means and cost imputed to the mental attributes of a product can range amongst cultures and are perceived as bad or positive.Maturity is the height and the very best factor of the cycle. It's while the product reaches its most capability and income and starts to stabilize. That would not imply your income may not grow, you simply may not revel in the equal fast stages of increase as before.
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which of the following transactions is most likely to appear on a statement of net worth? select one. question 3 options: a. inheriting property other than cash b. employer contributions made to a retirement savings account c. appreciation in value of a primary residence d. all of the above
Inheriting property other than cash , employer contributions made to a retirement savings account , appreciation in value of a primary residence are most likely to appear on a statement of net worth.
What is net worth?
A person or institution's net worth is determined by deducting the value of all of its outstanding liabilities from the total value of all of its financial and non-financial assets. Net worth can alternatively be succinctly represented as non-financial assets plus net financial assets because financial assets minus outstanding obligations equal net financial assets. It can be applied to organizations, people, governments, or even entire nations. One example would be the financial sector.
Net worth is a combination of financial assets and liabilities. The financial assets that contribute to net worth are homes, vehicles, various types of bank accounts, money market accounts, and stocks and bonds.The liabilities are financial obligations such as loans, mortgage, accounts payable (AP) that deplete resources.
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valley spa purchased $9,000 in plumbing components from tubman company. valley spa signed a 60-day, 8% promissory note for $9,000. if the note is dishonored, but tubman intends to continue collection efforts, what is the journal entry made by tubman to record the dishonored note? (use 360 days a year.)
The journal entry made by Tubman to record the dishonored note is Debit accounts receivable-Valley spa $9,120, Credit interest revenue $120; credit notes receivable $9,000.
Journal Entry for dishonor of notes receivable:
Account title and explanation Debit Credit
Accounts receivable-Valley Spa $9,120
Interest revenue [$9,000 x 8% x (60/360)] $120
Notes receivable $9,000
A note receivable is a written agreement to pay a specific sum of money to another party on one or more dates in the future. The holder of the note views this as an asset. In order to give the debtor more time to pay, past-due accounts receivable are occasionally changed into notes receivable. These notes occasionally also include a personal guarantee from the debtor's owner.The party obligated to send money to the payee is known as the maker, and the party receiving payment under the terms of the note is known as the payee. The principle is the amount of the payment that is required, as specified in the terms of the note. On the date the note matures, the principal is to be paid.Learn more about Notes receivable, here
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true or false: exporting and importing are sustainable long-term business strategies that guarantee a firm permanent access to overseas markets with minimal direct investment and limited risks.
A wholly owned subsidiary is a foreign business that is entirely owned and managed by a multinational corporation. To accomplish the aims and objectives of the company, strategic management requires ongoing planning, monitoring, and analysis.
Which of the following statements concerning global network structures is accurate?
Decisions are taken locally, yet each grouping communicates with headquarters and occasionally with one another in these complex integrations of business operations and communications.
A transnational business plan's main benefit is that it is less expensive than a multi-domestic strategy since it places a higher priority on global uniformity and efficiency. Global companies centralise as much resources as they can, reducing expenses.
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melinda crooke was a line worker for herbruck poultry ranch, an egg farm located in saranac, michigan. after her supervisor learned about her disability-related symptoms, she was mocked regularly by her supervisor and coworkers because of those symptoms. crooke reported the mocking nicknames and physical imitation of her symptoms, but her employer took no action. the harassment by her supervisor worsened, as the supervisor began following crooke to the bathroom to time her breaks. on april 10, 2015, her supervisor followed her to the bathroom and shouted at her. crooke reported the incidence to a person in human resources but was advised to return to her shift. crooke found returning to the work environment to be unbearable, so she quit her job. has the employer created a hostile work environment? to what extent is the employee required to notify her supervisor of her belief that the work environment is hostile? even though crooke quit, can she still file a complaint against her former employer?
Yes the employer has created a hostile work environment
Yes Crooke can still decide to file a complaint against her former employer
What is a hostile work environment?Employees are unable to perform their duties efficiently when there is a hostile work environment because of the many difficulties it brings to the workplace. This can be a significant problem for businesses and affect employee satisfaction, engagement, and productivity. Below, we go over what constitutes a hostile workplace and how to foster a supportive environment for your staff.
According to the U.S. Equal Employment Opportunity Commission, a genuine hostile work environment must adhere to specific legal requirements (EEOC). A hostile atmosphere can develop when:
Based on color, gender, pregnancy, religion, national origin, age, a disability, or genetics, unwanted behavior is known as harassment. Harassment is persistent and pervasive.
The behavior is so severe that it makes the setting threatening, offensive, or abusive.
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assume that dot has sufficient capacity to fill the order without harming normal production and sales.what minimum price should dot charge to achieve a $50,000 incremental profit?
Incremental profit per unit to be achieved = $50000/ 2000 units = $25 per unit Minimum price to be charged = Variable costs + Incremental profit
= ($60 + $40 + $30) + $25
= $155
Incrementalism is a technique of working by means of including to undertaking the usage of many small incremental changes rather than a few (notably planned) large jumps. Logical incrementalism means that the steps within the system are sensible.[1] Logical incrementalism focuses on "the energy-Behavioral technique to making plans in preference to to the Formal structures planning method".[1] In public coverage, incrementalism is the approach of change by which many small coverage changes are enacted over the years a good way to create a larger vast based policy trade. Political scientist Charles E. Lindblom developed this theoretical policy of rationality within the Fifties as a center way between the rational actor model and bounded rationality, as both long time, goal-driven coverage rationality and satisficing were not seen as good enough.
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tom's textiles shipped the wrong material to a customer, who refused to accept the order. upon receipt of the material, tom's would credit accounts receivable and debit:
A sales return is when a consumer actually returns inventory of goods for whatever reason.
The sales return account is a contra-sales account and is subtracted from the sales value to get net sales because it is a debit account. Since Tom’s Textiles tracked the sales, the return will be categorized as a sales return.The following entry was made in the journal for returned materials:Since the receipt of returned goods is documented, sales return A/C Dr To Account Receivable A/C.In order to accurately report the returned item, we simply debited the sales return account and credited the account receivable account.
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