Adjusting entry for customer refunds, allowances, and returns Statz Company had sales of $1,800,000 and related cost of goods sold of $1,150,000 for its first year of operations ending December 31 Statz provides customers a refund for any returned or damaged merchandise At the end of the year, Statz estimates that customers will request refunds for 1 5 of sales and estimates that merchandise costing $16,000 will be returned Assume that on February 3 of the following year, Buck Co returned merchandise with a selling price of $5,000 for a cash refund The returned merchandise originally cost Statz $3,100 a Journalize the adjusting entries on December 31 to record the expected customer returns Dec 31 Sales Accounts Payable Accounts Receivable Cash Merchandise Inventory Miscellaneous Expense Purchases Purchases Discounts Purchases Returns and Allowances Sales Customer Refunds Payable Accounts Payable Accounts Receivable Customer Refunds Payable Merchandise Inventory Miscellaneous Expense Purchases Purchases Discounts Purchases Returns and Allowances Sales Estimated Returns Inventory Accounts Payable Accounts Receivable Cash Cost of Goods Sold Estimated Returns Inventory Miscellaneous Expense Purchases Purchases Discounts Purchases Returns and Allowances Cost of Goods Sold Accounts Payable Accounts Receivable Cash Cost of Goods Sold Estimated Returns Inventory Miscellaneous Expense Purchases Purchases Discounts Purchases Returns and Allowances Feedback Partially correct b Journalize the entries to record the returned merchandise and cash refund to Buck Co on February 3 Feb 3 Customer Refunds Payable Accounts Payable Cash Customer Refunds Payable Merchandise Inventory Miscellaneous Expense Purchases Purchases Discounts Purchases Returns and Allowances Sales Cash Accounts Payable Cash Customer Refunds Payable Merchandise Inventory Miscellaneous Expense Purchases Purchases Discounts Purchases Returns and Allowances Sales Inventory Accounts Payable Accounts Receivable Cash Cost of Goods Sold Estimated Returns Inventory Inventory Purchases Purchases Discounts Purchases Returns and Allowances Estimated Returns Inventory Accounts Payable Accounts Receivable Cash Cost of Goods Sold Estimated Returns Inventory Inventory Purchases Purchases Discounts Purchases Returns and Allowances

Question

Adjusting entry for customer refunds, allowances, and returns Statz Company had sales of $1,800,000 and related cost of goods sold of $1,150,000 for its first year of operations ending December 31  Statz provides customers a refund for any returned or damaged merchandise  At the end of the year, Statz estimates that customers will request refunds for 1 5  of sales and estimates that merchandise costing $16,000 will be returned  Assume that on February 3 of the following year, Buck Co  returned merchandise with a selling price of $5,000 for a cash refund  The returned merchandise originally cost Statz $3,100  a  Journalize the adjusting entries on December 31 to record the expected customer returns  Dec  31 Sales Accounts Payable Accounts Receivable Cash Merchandise Inventory Miscellaneous Expense Purchases Purchases Discounts Purchases Returns and Allowances Sales Customer Refunds Payable Accounts Payable Accounts Receivable Customer Refunds Payable Merchandise Inventory Miscellaneous Expense Purchases Purchases Discounts Purchases Returns and Allowances Sales Estimated Returns Inventory Accounts Payable Accounts Receivable Cash Cost of Goods Sold Estimated Returns Inventory Miscellaneous Expense Purchases Purchases Discounts Purchases Returns and Allowances Cost of Goods Sold Accounts Payable Accounts Receivable Cash Cost of Goods Sold Estimated Returns Inventory Miscellaneous Expense Purchases Purchases Discounts Purchases Returns and Allowances Feedback Partially correct b  Journalize the entries to record the returned merchandise and cash refund to Buck Co  on February 3  Feb  3 Customer Refunds Payable Accounts Payable Cash Customer Refunds Payable Merchandise Inventory Miscellaneous Expense Purchases Purchases Discounts Purchases Returns and Allowances Sales Cash Accounts Payable Cash Customer Refunds Payable Merchandise Inventory Miscellaneous Expense Purchases Purchases Discounts Purchases Returns and Allowances Sales Inventory Accounts Payable Accounts Receivable Cash Cost of Goods Sold Estimated Returns Inventory Inventory Purchases Purchases Discounts Purchases Returns and Allowances Estimated Returns Inventory Accounts Payable Accounts Receivable Cash Cost of Goods Sold Estimated Returns Inventory Inventory Purchases Purchases Discounts Purchases Returns and Allowances

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Question: Adjusting entry for customer refunds, allowances, and returns Statz Company had sales of $1,800,000 and related cost of goods sold of $1,150,000 for its first

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