The following information related to the Jordanian company during the accounting period ended 31/12/2020: - The company sales the goods with right of return within (45) days - On 7/ April the company sold goods on account amounted $180,000, it cost equals $60,000 - On 7/April the company estimated the percentage of return equals 20% - Assume on 30/4 that the buying company returns 10% of the amount of goods sold - According to the above information answer the following questions: 1. The credit side of the journalize entry(entries) to record the sales transaction on 7/ April included:| a. Allowance for right to return- $36,000 b. Account receivable - $144,000 c. sales revenue - $180,000 d. None of the above 2. The credit side of the journalize entry(entries) to record cost of goods sold on 7/ April included: a. estimated return inventory- $12,000 b. inventory - $60,000 c. inventory- $48,000 d. a +c 3. The debit side of the journalize entry(entries) to record the return goods on 30/ April included: a. account receivable – $18,000 b. Allowance for right to return -$18,000 c. estimated return inventory - $6000 d. None of the above

The following information related to the Jordanian company during the accounting period ended 31/12/2020: - The company sales the goods with right of return within (45) days - On 7/ April the company sold goods on account amounted $180,000, it cost equals $60,000 - On 7/April the company estimated the percentage of return equals 20% - Assume on 30/4 that the buying company returns 10% of the amount of goods sold - According to the above information answer the following questions: 1. The credit side of the journalize entry(entries) to record the sales transaction on 7/ April included:| a. Allowance for right to return- $36,000 b. Account receivable - $144,000 c. sales revenue - $180,000 d. None of the above 2. The credit side of the journalize entry(entries) to record cost of goods sold on 7/ April included: a. estimated return inventory- $12,000 b. inventory - $60,000 c. inventory- $48,000 d. a +c 3. The debit side of the journalize entry(entries) to record the return goods on 30/ April included: a. account receivable – $18,000 b. Allowance for right to return -$18,000 c. estimated return inventory - $6000 d. None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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