For the year ended December 31, 2017, Modern Furniture made total sales of $1,000,000 but expects to
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For the year ended December 31, 2017, Modern Furniture made total sales of $1,000,000 but expects to receive requests for refunds of returned or damaged merchandise that are 2% of total sales. The company also expects to receive returns of merchandise costing $12,000. Prepare the adjusting entries required at year-end if 2017 is the company’s first year of operations.
Assume that the following year Modern Furniture (from problem #3) paid a refund of $4,500 for inventory costing $2,500. Prepare the journal entry to record this payment and reduction in inventory, which occurred on January 22, 2018.
Related Book For
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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