National Refuse Requires Customers to Pay $40 for Each Toter

question 28

Multiple Choice

National Refuse requires customers to pay $40 for each toter used for trash collection and charges this amount when delivered. When toters are returned, the amount is refunded to the customer. If a customer cancels the trash collection contract, but does not return the toter, the amount is forfeited by the customer. During the current year, 30 customers cancelled their contracts and failed to return their toter, while 105 toters are returned upon cancellation. Which of the following would be included in the journal entry to reflect the forfeiture?

• A) debit to Deposit Liability for $4,200
• B) debit to Deposit Liability for $1,200
• C) credit to Deposit Liability for $4,200
• D) credit to Deposit Liability for $5,400

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Definitions:

Religious Person

An individual who practices beliefs and rituals associated with a particular faith or spirituality.

Community Involvement

Participation by individuals or groups in activities and decisions that impact their local community.

Situational Cause

An explanation for behavior or an event that attributes the cause to external factors in the environment or specific situations.

Dispositional Cause

Attributions of behavior to personal characteristics or dispositions rather than situational factors.