In 2018, for the first time, Rumsey Ltd. offered customers a 30-day, no questions asked, returns policy
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Required:
a. What journal entry should Rumsey record for 2018 for estimated sales returns?
b. What amounts would be reported for accounts receivable and sales after the entry is made?
c. What entry would be recorded if, on January 7, 2019, $2,000 of merchandise was returned?
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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a Sales Returns and Allowances 10000 Contra sales Allowance for Returns 10000 Contra acc...View the full answer
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