Homework Answers
Option C i.e. $43,000 is the correct answer.
Explanation:
Balance in the refund account at the end of 2020 = Opening balance of refund liability + Expected Sales Return - Returns to customer credited to their account
= $ 32,000 + ($650,000 * 6%) - $ 28,000
= $ 32,000 + $ 39,000 - $ 28,000
= $43,000
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