When a buyer returns goods to a seller, the seller will also adjust Cost of Goods Sold,

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When a buyer returns goods to a seller, the seller will also adjust Cost of Goods Sold, Estimated Inventory Returns, and Inventory if the seller is using the contract-based approach to revenue recognition and a perpetual inventory system. Explain the two situations that make it necessary to record an entry in these accounts, what is debited and credited, and what amounts are used.

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Accounting Principles Volume 1

ISBN: 9781119786818

9th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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