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a refund when the Part 3 of 6 within one year. The inventory of containers remains on the deposits are forfeited. Deposits collected on containers delivered during the year were $100,000. Ninety-flive percent of the containers 0.96 points Prepare the appropriate journal entry for the deposits returned to customers. (If no entry ls required for a transactionevent, select No Journal entry required In the first account field.) Journal entry worksheet containers 01 < Prex S 67 of 13Next > MacBook Air
Do the journal entry please!
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No Event General Journal Debit Credit 01 Liability-refundable deposits 95,000 Cash 95,000 Explanation: Knowledge Check 01 The liability account needs to be reduced by the cash refunds that are made to customers as the containers are returned. Cash refunds = Deposits collected of $100,000 x 95% return percentage = $95,000

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