Blossom Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns period extends 60 days. On February 10, 2021, a customer purchases $2700 of products (cost $1350). Assuming that based on prior experience, estimated returns are 10%. The journal entry to record the actual return of $120 of merchandise includes a debit to Returned Inventory for $60. debit to Estimated Inventory Returns for $60. credit to Allowance for Sales Returns for $120. credit to Returned Inventory for $60
Blossom Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns period extends 60 days. On February 10, 2021, a customer purchases $2700 of products (cost $1350). Assuming that based on prior experience, estimated returns are 10%. The journal entry to record the actual return of $120 of merchandise includes a debit to Returned Inventory for $60. debit to Estimated Inventory Returns for $60. credit to Allowance for Sales Returns for $120. credit to Returned Inventory for $60
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 6RE: Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of...
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Blossom Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns period extends 60 days. On February 10, 2021, a customer purchases $2700 of products (cost $1350). Assuming that based on prior experience, estimated returns are 10%. The
debit to Returned Inventory for $60.
debit to Estimated Inventory Returns for $60.
credit to Allowance for Sales Returns for $120.
credit to Returned Inventory for $60.
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