# Adjusting entries for refunds, allowances, and returns Assume the following data for Oshkosh Company before its year-end adjustments: Unadjusted Balances Debit Credit Sales $51,600000 Cost of Merchandise Sold$31,750,000 Estimated Returns Inventory 28,100 Customer Refunds Payable 115,400 Estimated cost of merchandise that will be returned In the next year $400,000 Estimated percent of refunds for current year sales 1.2% Journalize the adjusting entries for the following: a. Estimated customer refunds and allowances b. Estimated customer returns BuyFind ### Accounting 27th Edition WARREN + 5 others Publisher: Cengage Learning, ISBN: 9781337272094 BuyFind ### Accounting 27th Edition WARREN + 5 others Publisher: Cengage Learning, ISBN: 9781337272094 #### Solutions Chapter Section Chapter 6, Problem 6.20EX Textbook Problem ## Adjusting entries for refunds, allowances, and returnsAssume the following data for Oshkosh Company before its year-end adjustments: Unadjusted Balances Debit Credit Sales$51,600000 Cost of Merchandise Sold $31,750,000 Estimated Returns Inventory 28,100 Customer Refunds Payable 115,400 Estimated cost of merchandise that will be returned In the next year$400,000   Estimated percent of refunds for current year sales 1.2%   Journalize the adjusting entries for the following: a. Estimated customer refunds and allowances b. Estimated customer returns

Expert Solution

a.

To determine

Sales is an activity of selling the merchandise inventory of a business.

To Record: The adjusting entry for estimated customer allowances.

### Explanation of Solution

Explanation

• Sales is revenue and it decreases the value of equity by $619,200. Therefore, debit sales with$619,200...
Expert Solution

b.

To determine

To Record: The adjusting entry for estimated customer returns.

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