ProBuilder reports merchandise sales of $74,000 and cost of merchandise sales of $18,500 in its first year of operations ending June 30. It makes fiscal-year-end adjusting entries for estimated future returns and allowances equal to 1% of sales, or $740, and 1% of cost of sales, or $185. A. & b. Prepare the June 30 fiscal-year-end adjusting journal entry for future returns and allowances related to sales and cost of sales.

answer: 42

use a calculator to find that 845/73 = 11.575

the whole part of the answer is 11. multiply this by 73 to get 11*73 = 803.

subtract that result from 845 to get 845 - 803 = 42

c) yes, because of asa or aas

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%