ProBuilder reports merchandise sales of $50,000 and cost of merchandise sales of $20,000 in its first year of operations ending June 30. It makes fiscal-year-end adjusting entries for estimated future returns and allowances equal to 2% of sales, or $1,000, and 2% of cost of sales, or $400. a. Prepare the June 30 fiscal-year-end adjusting journal entry for future returns and allowances related to sales. b. Prepare the June 30 fiscal-year-end adjusting journal entry for future returns and allowances related to cost of sales.
ProBuilder reports merchandise sales of $50,000 and cost of merchandise sales of $20,000 in its first year of operations ending June 30. It makes fiscal-year-end adjusting entries for estimated future returns and allowances equal to 2% of sales, or $1,000, and 2% of cost of sales, or $400. a. Prepare the June 30 fiscal-year-end adjusting journal entry for future returns and allowances related to sales. b. Prepare the June 30 fiscal-year-end adjusting journal entry for future returns and allowances related to cost of sales.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter10: Accounting For Sales And Cash Receipts
Section: Chapter Questions
Problem 4SEA: SALES RETURNS AND ALLOWANCES ADJUSTMENT At the end of year 1, JCs estimates that 2,000 of the...
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ProBuilder reports merchandise sales of $50,000 and cost of merchandise sales of $20,000 in its first year
of operations ending June 30. It makes fiscal-year-end
allowances equal to 2% of sales, or $1,000, and 2% of cost of sales, or $400.
a. Prepare the June 30 fiscal-year-end adjusting
b. Prepare the June 30 fiscal-year-end adjusting journal entry for future returns and allowances related to
cost of sales.
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