Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. stella, inc. purchased 75 telescopes for $25 each

Stella, Inc. purchased 75 telescopes for $25 each from Luna Co. When they unpacked the...

70.2K

Verified Solution

Question

Accounting

Stella, Inc. purchased 75 telescopes for $25 each from Luna Co. When they unpacked the telescopes, Stella found that 20 of the telescopes were damaged in shipping. Luna offers to take them back, or provide an allowance of $300. How would the journal entries differ if Stella chose to take the allowance instead of return the telescopes?

A. The company would debit and credit the same accounts, but for a lesser amount.

B. There would be no difference in journal entries.

C. The company would debit the Allowance account instead of Purchase Returns.

D. The company would debit and credit the same accounts, but for a greater amount.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

You have to get a new driver's license and you show up at the office at...

Programming
Q

Applying Kohlberg’s theory, describe how would someone at each level of moral development reason about why...

Psychology
Q

Scene 1 Section 4 underlined considered a soliloquy A Brutus reads the letter in a...

Biology
Q

Yolanda estimated the length of a room is her house to be 13 ft. The...

Basic Math
Q

You are concerned that nausea may be a side effect of Tamiflu but you cannot...

Statistics
Q

If you randomly select a letter from the phrase I like to swim at the...

Statistics
Q

Can someone please show me how you would make the Balance sheet for this problem?

Accounting
Q

The manager of Ingrid Ltd is preparing their budget for the upcoming fiscal quarter, commencing...

Accounting
Q

please assist me ...

Accounting
Q

Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2016. It made...

Accounting
Q

More Info The company is considering two possible expansion plans. Plan A would open eight...

Accounting
Q

The 2011 balance sheet of Annas Tennis Shop, Inc., showed long-term debt of $5.0 million,...

Finance