Assume the following data for Lusk Inc. before its year-end adjustments: Unadjusted Balances Debit Credit Sales $3,600,000 Cost of Merchandise Sold $2,100,000 Estimated Returns Inventory 1,800 900 Customer Refunds Payable Estimated cost of merchandise that will $15,000 |be returned in the next year Estimated percent of refunds for current year sales 0.8%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Customer allowances and returns
Assume the following data for Lusk Inc. before its year-end adjustments:

Journalize the adjusting entries for the following:
a. Estimated customer allowances
b. Estimated customer returns

Assume the following data for Lusk Inc. before its year-end adjustments:
Unadjusted
Balances
Debit
Credit
Sales
$3,600,000
Cost of Merchandise Sold
$2,100,000
Estimated Returns Inventory
1,800
900
Customer Refunds Payable
Estimated cost of merchandise that will
$15,000
|be returned in the next year
Estimated percent of refunds for current
year sales
0.8%
Transcribed Image Text:Assume the following data for Lusk Inc. before its year-end adjustments: Unadjusted Balances Debit Credit Sales $3,600,000 Cost of Merchandise Sold $2,100,000 Estimated Returns Inventory 1,800 900 Customer Refunds Payable Estimated cost of merchandise that will $15,000 |be returned in the next year Estimated percent of refunds for current year sales 0.8%
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