A company allows 10% of gross sales to be returned within a month of sale, and estimates

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A company allows 10% of gross sales to be returned within a month of sale, and estimates that potential returns amount to $ 25,000 at year- end based on December sales. The allowance for sales returns is now $ 10,000 (credit). What entry should be made?

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Intermediate Accounting

ISBN: 978-0071339476

Volume 1, 6th Edition

Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I

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