Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7 HW Hell Save S Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a

image text in transcribed
image text in transcribed
image text in transcribed
7 HW Hell Save S Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit no cash is collected at the time of sale. The company began 2018 with a slowance for sales returns of $390,000. During 2018, Halifax sold merchandise on account for $12,400,000. This merchandise cost Half $8.060.000 (65% of selling prices). Also during the your customers returned $368,000 in sales for credia Sales returns estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year Required: 1. Prepare an entry to record actual merchandise returns as they occur not adjusting the allowance for sales returns), and then record a year-end entry to adjust the allowance for sales returns to its appropriate balance 2. What is the amount of the year-end allowance for sales returns after the adjusting entry is recorded? o Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an entry to record actual merchandise returns as they occur (not adjusting the allowance for sales returna), and then record a year-end entry to adjust the allowance for sales returns to its appropriate balance (if no entry is required for a transaction/eventselect "No journal entry required in the first account field.) View transaction et Journal entry worksheet > 3 4 Hrepare an entry to record actual merchandise returns as they occur inot adjusting the arowance for sales returns), and then record a year-end entry to adjust the allowance for sales returns to its appropriate balance. (If no entry is required for a transaction event, select "No journal entry required in the first account field) 3 View transaction Journal entry worksheet Doints 3 4 0236-50 Record the actual sales returns ook Print Note: Enter debits before credits Referencer General Journal Debit Credit Year 2018 View general Journal Record entry Clear entry 3 of 16 $8,060,000 (65% of seling prices). Also during the year, customers returned $368,000 in sales for credit. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare an entry to record actual merchandise returns as they occur (not adjusting the allowance for sales returns), and then record a year-end entry to adjust the allowance for sales returns to its appropriate balance 2. What is the amount of the year-end allowance for sales returns after the adjusting entry is recorded? 02:3635 Book Complete this question by entering your answers in the tabs below. erences Required 1 Required 2 What is the amount of the year-end allowance for sales returns after the adjusting entry is recorded? Ending balance in allowance nocount

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advances In Quantitative Analysis Of Finance And Accounting (Vol. 5)

Authors: Lee Cheng Few

1st Edition

9812706283, 9789812706287

More Books

Students also viewed these Accounting questions