User Account

All Pages

What is the promotional expense that drew richards

Assignment Help Accounting Basics
Reference no: EM13994965

Drew-Richards iMusic is a regional music media reseller. As a promotion, it offered $5 cash rebates on specific CDs. Customers must mail in a proof-of-purchase seal from the package plus the cash register receipt to receive the rebate. Experience suggests that 70% of the rebates will be claimed. Twenty thousand of the CDs were sold in 2011. Total rebates to customers in 2011 were $22,000 and were recorded as promotional expense when paid. The fiscal year ends on December 31.

Required:

1. What is the promotional expense that Drew-Richards should report in its 2011 income statement?

2. What is the premium liability that Drew-Richards should report in its 2011 balance sheet?

3. Prepare the appropriate journal entry to record the contingency. 

Reference no: EM13994965

Questions Cloud

Components from countries with lower material costs : Imagine that you work for a custom-bicycle company that has thus far only manufactured in the United States. You’re under pressure to reduce costs. What options would you explore? Would you consider sourcing some of the components from countries with..
Calculate golda''s estimated income tax liability : Calculate Golda's estimated income tax liability & NIC for 2016/17, for both remuneration packages. The calculation needs to have a table, with NSI, SI, DI, & Total in it, & any Notes/Assumptions at the bottom of the page.
Certain time of the purchase : The appliance giant offers a replacement guarantee on kettles which malfunction within a certain time of the purchase, but due to financial constraints, can only afford a maximum of 5% replacements. What must the guarantee period be?
How the relevance of personality theories is important : Explain how the relevance of personality theories is important as you are achieving your own personal and professional goals. Describe how your own personal ideas impact the research that you may conduct
What is the promotional expense that drew richards : What is the promotional expense that Drew-Richards should report in its 2011 income statement?
Return to original supply and demand equation at beginning : The following relations describe demand and supply. Find the market clearing (equilibrium) price and quantity and show them graphically using S and D curves. A free hand graph will do as long as you identify clearly market clearing P and Q. Following..
Bernoulli-binomial-poisson and geometric distributions : When do you know when to use the Bernoulli, Binomial, Poisson, and Geometric distributions? Please provide 150-200 words.
Potential conflict between laws in your state : Your thoughts about how various legal guidelines, ethics codes, and specialty guidelines influence diagnosis and assessment in general. Reference at least one potential conflict between laws in your state, ethical guidelines, or specialty guidelin..
Two firms face the same wage and rental price of capital : If two firms face the same wage and rental price of capital but spend different amounts labor and capital, how do their isocost lines differ? What is the effect on their isocost lines if the wage rate increases?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Would a manager of an apple retail store participate more

would a manager of an apple retail store participate more in budgeting than a manager at the corporate offices? what

  Acme in pruchased 50000 shares of takedown enterprises on

acme in pruchased 50000 shares of takedown enterprises on january 12000. the total purchase price was 4300000.

  Compute the units needed to achieve an operating income of

compute the units needed to achieve an operating income of 30000.fixed costs are 100000.selling price per unit is85 and

  Astair inc reported sales of 8000000 for the month and

astair inc. reported sales of 8000000 for the month and incurred variable expenses totaling 5600000 and fixed expenses

  Calculate the expected electricity savings benefit based on

factory 2 has 20 fluorescent lighting tubes throughout the factory which runs for 14 hours every day for operational

  Which of the following is true of a dividend payout

A firm has issued preferred stock at its $125 per share par value. The stock will pay a $15 annual dividend. The cost of issuing and selling the stock was $4 per share. The cost of the preferred stock is ________. Which of the following is true of ..

  What are the benefits of issuing and investing in euro bonds

What are the benefits of issuing and investing in Euro bonds?

  The initial estimates were that the project would cost

quillen company is performing a post-audit of a project completed one year ago.the initial estimates were that the

  Appropriate liability account

Sylvester Company requires clients to pay in advance for legal services. One such client made a $4,000 payment on May 1, and Sylvester Company recorded this transaction in the appropriate liability account. As of May 20, the legal services that th..

  Assume the same facts as assumed for part a except that 20

in 2013 chirac enterprises issued at par 60 1000 8 bonds each convertible into 100 shares of common stock. chirac had

  Describe what factors you would consider in deciding

Describe what factors you would consider in deciding whether to develop the application in house or outsource the application to an outside company.

  Budgeted indirect cost allocation rate

Ireland Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $180,000. The budgeted number of nozzles to be inserted is 80,000. What is the budgeted indirect cost allocation rate for this activ..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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