Halifax manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. all of halifax's sales are for credit (no cash is collected at the time of sale). the company began 2016 with an allowance for sales returns of $400,000. during 2016, halifax sold merchandise on account for $12,500,000. this merchandise cost halifax $8,750,000 (70% of selling prices). also during the year, customers returned $613,000 in sales for credit. sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year. required: 1. prepare the entry to record the merchandise returns and the year-end adjusting entry for estimated returns. note: record the estimated returns at net amounts.2. what is the amount of the year-end allowance for sales returns after the adjusting entry is recorded?

Grace period is a period of time before the credit card company starts charging late fees.truefalse

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?

Omnidata uses the annualized income method to determine its quarterly federal income tax payments. it had $100,000, $50,000, and $90,000 of taxable income for the first, second, and third quarters, respectively ($240,000 in total through the first three quarters). what is omnidata's annual estimated taxable income for purposes of calculating the third quarter estimated payment?