Adjustment for Customer Refunds and Returns

Assume the following data for Alpine Technologies for the year ending July 31, 20Y2.

Sales		$900,000
Estimated percent of sales expected to be refunded or issued an allowance in 20Y3		1.5%
Estimated cost of inventory expected to be returned in 20Y3		$6,000

Illustrate the effects of the adjustments for customer refunds and returns on the accounts and financial statements of Alpine Technologies for the year ended July 31, 20Y2. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.

Homework #4 eBook Calculator Adjustment for Customer Refunds and Returns Assume the following data for Alpine Technologies for the year ending July 31, 20Y2. Sales Estimated percent of sales expected to be refunded or Issued an allowance In 20Y3 Estlmated cost of Inventory expected to be returned In 20Y3 $6,000 Illustrate the effects of the adjustments for customer refunds and returns on the accounts and financlal statements of Alpine Technologles for the year ended July 31, 20Y2. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. $900,000 1.5% Balance Sheet Statement Income of Cash Assets Liabilities +Stockholders Equity Statement No Effect+Estimated Returns InventoryCustomer Refunds Payable+Retained EarningsV 0 6,000 X 13,500 7,500X Statement of Cash Flows Income Statement No effect X Sales X 13,500X Cost of goods sold X -6,000 X