Borden Corporation Had Sales This Year of $2,450,000 and Cost

question 239

Multiple Choice

Borden Corporation had sales this year of $2,450,000 and cost of goods sold of $1,100,000. Borden expects returns in the following year to equal 8% of sales. The adjusting entry or entries to record the expected sales returns is(are) :

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Definitions:

Exclusive Government Contract

A legal agreement where a government grants only one company the right to provide goods or services, prohibiting competitors.

Acquire Patents

Process of obtaining legal rights to inventions or designs, ensuring exclusive use to the holder.

Cost-Reduction

Strategies or actions taken to lower expenses and improve efficiency in production or operations.

Long-Run Profitability

A measure of a company's ability to maintain earnings at a certain level over the length of time necessary to cover all costs, including variable and fixed costs.