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3. Ash Co. began 2022 with a $2,400,000 balance in accounts receivable and an $84,000 balance in the refund liability. Ash makes all sales
3. Ash Co. began 2022 with a $2,400,000 balance in accounts receivable and an $84,000 balance in the refund liability. Ash makes all sales on account and provides account customers with the right of return. During 2022, Ash had sales totaling $6,500,000 with a gross profit rate of 40%. Ash collected $6,600,000 from account customers in 2022. Ash recorded actual sales returns in 2022 of $120,000. Ash estimates sales returns to be 2% of sales revenues. Ash has a perpetual inventory system and a 12/31 fiscal year end. Ash anticipates no bad debt losses. 3a. Provide Ash's summary journal entry to record the actual returns during 2022. Account name Debit Credit 3b. Provide Ash's adjusting journal entry at 12/31/2022 to record the estimate of returns. Do-stitw 3c. What is the amount of Net Sales and Cost of Goods Sold that Ash would include on its 2022 Income Statement? Provide supporting calculations. Net Sales COGS JRUGSVA stuct
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