Rebate expense and liability

Assignment Help Accounting Basics
Reference no: EM13150706

A company offers a cash rebate of $1 on each $4 package of batteries sold during 2007. Historically, 10% of customers mail in the rebate form. During 2007, 6,000,000 packages of batteries are sold, and 210,000 $1 rebates are mailed to customers. What is the rebate expense and liability, respectively, shown on the 2007 financial statements dated December 31?

a. $600,000; $600,000

b. $600,000; $390,000

c. $390,000; $390,000

d. $210,000; $390,000

Reference no: EM13150706

Questions Cloud

Dividends per share for preferred and common stock : Determine the dividends per share for preferred and common stock for each year. Round all answers to nearest whole cent. If an answer is zero, enter '0'
Margin ratio and the unit contribution margin : Bailey Company sells 25,000 units at $15 per unit. Variable costs are $8 per unit, and fixed costs are $35,000. The contribution margin ratio and the unit contribution margin, (rounding to two decimal points) are:
Conclude college students watch less videos per month : With a standard deviation of 0.5. At a .05 significance level, can we conclude college students watch fewer videos per month than high school students?"
Patents and copyrights, which reflects a free market : Between patents and copyrights, which reflects a free market, and which is a grant of monopoly privilege by the state? Patents give inventors or developers of new products
Rebate expense and liability : What is the rebate expense and liability, respectively, shown on the 2007 financial statements dated December 31?
Amount of sales required to realize an operating income : If fixed costs are $1,500,000, the unit selling price is $250, and the unit variable costs are $130, what is the amount of sales required to realize an operating income of $200,000?
Calculate the ph : Consider the titration of 50.0 mL of 0.200 M HClO4 by 0.100 M NaOH. Calculate the pH after 37.7 mL of NaOH has been added.
Find standard error of mean if rainfall recorded twenty : If the rainfall was recorded on 20 (instead of 10) randomly selected days throughout the year, the standard error of the mean would be equal to?
How much heat is required : How much heat is required to convert 25.0g of ethanol at 25 degrees C to the vapor phase at 78 degrees C?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Should catalina report and then cancel those three sales

Catalina works for a regional sales branch of a large pharmaceutical company. Individual employees as well as individual goals, he or she receives a large bonus check at the end of the year.

  Find gain should be recognized in reed income tax return

Joan Reed exchanged commercial real estate that she owned for other commercial real estate plus cash of $50,000. The following additional information pertains to this transaction.

  Hedging exchange rate risk

Hedging Exchange Rate Risk. An importer in the United States is due to take delivery of silk scarves from Europe in 6 months. The price is fixed in euros.

  Consolidated statement of financial position

In deliberations prior to the issuance of SFAS 160, "Noncontrolling Interests in Consolidated Financial Statements," the FASB considers three alternatives for displaying the noncontrolling interest in the consolidated statement of financial positi..

  What is xenon alternative minimum tax

Xenon Corporation has $112,000 of regular taxable income, $68,000 of preference items, $98,000 of positive adjustments, and $36,000 of negative adjustments that affect its determination of alternative minimum taxable income. What is Xenon's altern..

  Differences between tax and accounting income

Woody Corp. had taxable income of $8,000 in the current year. The amount of MACRS depreciation was $3,000 while the amount of depreciation reported in the income statement was $1,000. Assuming no other differences between tax and accounting income..

  Accounting reporting criteria

Compare and contrast the accounting reporting criteria-including regulatory environment, issues with foreign currency, differences in GAAP, and any others-of a U.S. company with a foreign company.

  What are different criteria for recognizing revenue

What are different criteria for recognizing revenue?Why are there so many revenue recognition methods?Why are the methods subjective and what are the implications on income statement quality?

  Job-order costing system

In a job-order costing system, direct labor costs usually are recorded initially with a debit to:

  Opportunity to buy a machine

The Whitton Company uses a discount rate of 16%. The company has an opportunity to buy a machine now for $18,000 that will yield cash inflows of $10,000 per year for each of the next three years.

  Create a monthly sales budget

Nygaard sports single product is purchased for $30 per unit and resold for $53 per unit. the expected inventory level of 4750 units on december 31, 2009, is more than the managements desired level for 2010, which is 20% of the next month's expecte..

  What is cypress corps maximum cost recovery

Cypress Corp., a calendar year corporation, purchased a $750,000 factory building in February, $240,000 of new machinery in April, $90,000 of new office furniture in August, $130,000 of used machinery in October, and $140,000 of new office furnitu..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd