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6. A retailer made $400,000 in sales in the second quarter. The average rate of merchandise returns for this firm is 5%. The beginning balance

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6. A retailer made $400,000 in sales in the second quarter. The average rate of merchandise returns for this firm is 5%. The beginning balance of the Return Reserve was $22,000. The actual cash returned to customers as a result of returns in the second quarter was $17,000. What was the ending balance of the Return Reserve? a. $17,000 b. $20,000 c. $22,000 d. $25.000 e. $42,000

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