Assume the following data for Lusk Inc. before its year-end adjustments: Unadjusted Balances Debit Credit $3,600,000 Sales $2,100,000 Cost of Merchandise Sold Estimated Returns Inventory 1,800 Customer Refunds Payable 900 Estimated cost of merchandise that $15,000 will be returned in the next year Estimated percent of refunds for current year sales 0.8% 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 $3,600,000 Sales $2,100,000 Cost of Merchandise Sold Estimated Returns Inventory 1,800 Customer Refunds Payable 900 Estimated cost of merchandise that $15,000 will be returned in the next year Estimated percent of refunds for current year sales 0.8% Journalize the adjusting entries for the following: a. Estimated customer allowances b. Estimated customer returns
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter14: Adjustments For A Merchandising Business
Section: Chapter Questions
Problem 3MC: Under the periodic inventory system, what account is debited when an estimate is made for the cost...
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