Netherland Corporation Has the Following Unadjusted Balances: Accounts Receivable,$80,000 (Debit),and

question 93

Multiple Choice

Netherland Corporation has the following unadjusted balances: Accounts Receivable,$80,000 (debit) ,and Allowance for Sales Discounts $300 (credit) .Of the receivables,$50,000 of them are within the 2% discount period,and Netherland expects buyers to take $1,000 in future-period discounts ($50,000 × 2%) arising from this period's sales.The adjusting entry to estimate sales discounts is (are) :

• A) \[\begin{array} { | l | r | l | }
• \hline \text { Accounts Receivable } & 80,000 & \\
• \hline \text { Sales } & & 80,00 \mathrm { C } \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Sales Discounts } & 50,000 & \\
• \hline \text { Sales } & & 50,000 \\
• \hline \text { Cost of Goods Sold } & 1,000 & \\
• \hline \text { Inventory Returns Estimated } & & 1,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Sales Discounts } & 700 & \\
• \hline \text { Allowance for Sales Discounts } & & 700 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Sales Discounts } & 1,000 & \\
• \hline \text { Accounts receivable } & & 1,000 \\
• \hline
• \end{array}\]
• E) \[\begin{array} { | l | r | l | }
• \hline \text { Sales Discounts } & 1,000 & \\
• \hline \text { Allowance for Sales Discounts } & & 1,000 \\
• \hline
• \end{array}\]

---

Definitions:

Arbitrator's Decisions

Binding rulings made by an arbitrator or arbitrators in a dispute resolution process, typically involving labor management and employee conflicts.

Employment Matters

Issues, discussions, and policies related to the employment relationship between employers and employees, including hiring, termination, benefits, and workplace practices.

Grievance Process

A formalized procedure that allows employees to report and resolve issues or complaints, typically related to the workplace environment, policies, or treatment by others.

Labor Agreement

A legally binding contract between employers and their employees or representatives, outlining employment terms, conditions, and rights.