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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:False Value Hardware began in 2011 with a credit balance of
$32,000 in the allowance for sales returns account. Sales and
cash collections from customers during the year were $650,000
and $610,000, respectively. False Value estimates that 6% of
all sales will be returned. In 2011, customers returned
merchandise for a credit of $28,000 to their accounts.
False Value's 2011 income statement would report net sales of:
a. $611,000
b. $607,000
c. $646,000
d. $622,000
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- What percentage of sales is expected to be returned on these general accounting question?arrow_forwardFlimflam Corp had sales to customers of $475,000 during 2015. The company has consistently experienced a 35% gross profit percentage and estimates that 5% of all sales will be returned. During 2015, customers returned merchandise for credit of $18,000 to their accounts. The balance in the allowance for sales returns account at the beginning of 2015 was $24,000. What is the balance in the allowance for sales returns account at the end of 2015?arrow_forwardSales returns account at the end of 2013 ?arrow_forward
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