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The Georgia Company sells inventory but also allows returns. Georgia sells items for $100 per item. Cost of the inventory is 60% of the price. Georgia estimates that returns will be 10% of sales. When Georgia gets an actual return, which of the following would be part of the journal entry? Multiple Choice Credit to Refund Liability at Cost Debit to Refund Liability at Cost Debit to Refund Liability at Price Credit to Refund Liability at Price

The Georgia Company sells inventory but also allows returns. Georgia sells items for $100 per item. Cost of the inventory is 60% of the price. Georgia estimates that returns will be 10% of sales. When Georgia gets an actual return, which of the following would be part of the journal entry? Multiple Choice Credit to Refund Liability at Cost Debit to Refund Liability at Cost Debit to Refund Liability at Price Credit to Refund Liability at Price

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 17P
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The Georgia Company sells inventory but also allows returns. Georgia sells items for $100 per item. Cost of the inventory is 60% of the price. Georgia estimates that returns will be 10% of sales. When Georgia gets an actual return, which of the following would be part of the journal entry?

Multiple Choice

Credit to Refund Liability at Cost

Debit to Refund Liability at Cost

Debit to Refund Liability at Price

Credit to Refund Liability at Price

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