This topic contains a solution. Click here to go to the answer

Author Question: In its first month of business, Fish Nets, Inc sold 8,000 nets with a three-month warranty for 10 ... (Read 158 times)

tiara099

  • Hero Member
  • *****
  • Posts: 588
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



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

scottmt

  • Sr. Member
  • ****
  • Posts: 322
Answer to Question 1

A

Answer to Question 2

True





 

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

For a complete list of videos, visit our video library