Adjustment for Customer Refunds and Returns

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

Sales $1,368,000 Estimated percent of sales expected to be refunded or issued an allowance in 20Y3 1.0% Estimated cost of inventory expected to be returned in 20Y3 $15,600 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.

Statement of Cash Flows Balance Sheet Income Statement Assets = Liabilities + Stockholders' Equity No Effect + Estimated Returns Inventory = Customer Refunds Payable + Retained Earnings 0 Statement of Cash Flows Income Statement Sales

Cost of goods sold