The following information pertains to a wholesale distribution firm for 2021. Net credit sales 19,500,000 Merchandise cost percentage 60% Refund liability BB 550,000 Total customer returns (actual) 775,000 Of the actual returns, this much was for merchandise purchased in 2021 375,000 Sales returns estimate 5% Calculate the following: Total estimated returns for 2021 Dollar amount of 2021 actual returns that were for merchandise purchased prior to 2021.

Create the following journal entries. Be sure to calculate cost amounts and include those entries. The entry for 2021 sales: The entry to record the sales returns for merchandise purchased in 2021: The entry to record the sales returns for merchandise that was purchased prior to 2021: The entry to record the estimate for additional returns that are expected after 2021. 

What is the ending balance in the Refund liability account? 

The Inventory estimated returns account? 

How much is gross profit for the year?

Answer rating: 100% (QA)

Okay lets solve this stepbystep 1 Total estimated returns for 2021 Net credit sales ... View the full answer