Rusty Hardware does cash sales only. You started 2016 with a credit balance of $32,000 in the refund liability account. Sales during 2016 were $600,000. Rusty estimates that 6% of all sales will be returned. During 2016, customers returned merchandise for credit of $28,000 to their accounts. What is the balance in the provision account for sales returns at the end of 2016?

Answer rating: 100% (QA)

To determine the balance in the provision account for sales returns at the end of 2016 we need to ca... View the full answer