Mcbeal&company had sales of $9250 for the month of dec.managment expects 8% of these sales to...
Mcbeal&company had sales of $9250 for the month of dec.managment expects 8% of these sales to be returns or allowances. the cost of goods associated with return is $650. what would the adjusting entry be on dec 31
a-debit COGS $740
b-credit sales $740
c-debit estimates inventory returns $650
d-credit estimated refund liability $650
Homework Answers
Answer: c. Debit , Estimated Inventory Returns $ 650
a. is not the correct option because COGS to be credited in case of inventory returns with $ 650.
b. is not correct as crediting sales would increase the sales balance, whereas sales returns has the effect of decreasing gross sales.
b. is not the correct answer as the refund liability is $ 740, and not $ 650.
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Mcbeal&company had sales of $9250 for the month of
dec.managment expects 8% of these sales to...
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help with journal entries Exercise 7-8 Sales returns (LO7-4] Halifax Manufacturing allows its customers to return m...
help
with journal entries
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Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after...
Halifax Manufacturing allows its customers to return merchandise
for any reason up to 90 days after delivery and receive a credit to
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collected at the time of sale). The company began 2018 with a
refund liability of $410,000. During 2018, Halifax sold merchandise
on account for $13,500,000. Halifax's merchandise costs it 65% of
merchandise selling price. Also during the year, customers returned
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help with journal entries Helo Save & Exercise 7-8 Sales returns (L07-4) points Halifax Manufacturing allows...
help with journal entries
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I need a specific number, preferably a specific process.
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Help with journal entries?
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help
with journal entries
Exercise 7-8 Sales returns (LO7-4] Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2018 with an alowance for sales returns of $300,000. During 2018, Halifax sold merchandise on account for $11,500,000. This merchandise cost Haldex $7,475,000 (65% of selling prices). Also...
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their accounts. All of Halifax's sales are for credit (no cash is
collected at the time of sale). The company began 2018 with a
refund liability of $410,000. During 2018, Halifax sold merchandise
on account for $13,500,000. Halifax's merchandise costs it 65% of
merchandise selling price. Also during the year, customers returned
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help with journal entries
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