Answer:
Dr Allowances for sales returns $600
Cr Sales refund payable $600
Being increase sales refund estimate
Explanation:
The sales refund account is liability account that should naturally have a credit balance.
In the current period the balance in the sales refund payable account should be $900 in total,but there is a balancing credit amount already in the account,intuitively, the amount needed to raise the balance in the account to $900 is $600.
The necessary entries required for the sales refund payable is shown below:
Dr Allowances for sales returns $600
Cr Sales refund payable $600
Being increase sales refund estimate
There is no adjusting entry to accounts receivable as that deals with receipt of cash from sales transactions and not the actual sales transactions.
When the refund is eventually settled with cash, a debit is posted to sales refund payable and a credit to cash account
Answer:
The journal entry in respect of the factored debt is shown below:
Dr Cash $95,000
Dr Factoring cost $5000
Cr Accounts receivable $100,000
Explanation:
The factoring of accounts receivable implies that a finance company known as factor takes responsibility for chasing debtors for payments in return for a 5% charge of the accounts receivable.
Since factoring transfers accounts receivable to factoring comparing, accounts receivable is credited with face value of the debt,an inflow of cash from the factor is debited to cash account while also debiting the difference debt and cash received to a factoring expense account.
This avails the company quick access to cash receivable later.
The financial instrument described above is MUNICIPAL BOND.
Municipal bonds are debt securities which can be issued by states, cities, counties, etc. This type of financial instrument is usually raised in order to provide funding for capital projects such as construction of schools, highways and other public facilities. The interests on municipal bonds are usually exempted from taxes. <span />
<span>The fact that Kellog is increases its promotion expenditure to counteract competitive responses means that </span>Kellogg's is in the maturity stage of the product life cycle. The maturity stage us the third stage of the product life cycle, and comes a<span>fter the </span>Introduction<span> and </span>Growth<span> stages.
</span>In this stage the companies are focused on maintaining their market share in the face of a number of different challenges.
Answer:
Price bundling strategy
Explanation:
Price bundling in business means combining several products or services into a single comprehensive package for an all-inclusive price that is reduced. Now Despite the fact that the items are sold for discounted prices, the benefit of price bundling is that it can increase profits because it promotes the purchase of more than one item. This is the strategy the cell phone provider used when Claire was purchasing her cell phone.
