General Stores (GS) sells merchandise for cash. It began 20X1 with a refund liability of $0, made sales of $1,000,000 during 20X1 which cost GS $600,000 (or 60%), estimates that 1% of all sales will be returned, and experiences $8,000 of returns during 20X1. When accruing its estimate of remaining returns at the end of 20X1, what is the amount GS would debit sales returns and credit the refund liability?

Answer rating: 100% (QA)

Solution To determine the amount that General Stores GS would debit sales returns and credit the ref... View the full answer