In its first month of business, Fish Nets, Inc sold 8,000 nets with a three-month warranty for 10 each on account. Fish Nets estimates that 1 of its sales will be uncollectible and that warranty costs will be approximately 100 on its sales.
Fish Nets' financial statements should include ________.
A) Bad debts expense of 800 and Warranty expense of 100 on its income statement
B) Allowance for uncollectible accounts of (80 ) and nothing for the warranties on its balance sheet
C) Bad debts expense of 80 and Warranty expense of 100 on its income statement
D) Allowance for uncollectible accounts of (80 ) and Unearned warranty of 100 on its balance sheet
Question 2
The amounts for sales returns and allowances, sales discounts, and net sales added together equal gross sales.
a. True
b. False
Indicate whether the statement is true or false
Flying fish
Elephant Nose Fish
Julie Green, Don't Name Fish after Friends.
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Business Math Question Solution
At 19 months, Merr would clearly pass the 17-month item on the Bayley Scales