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Cullumber Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns period extends 60 days. On
Cullumber Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns period extends 60 days. On February 10, 2024, a customer purchases $5200 of products (cost $2600 ). Assuming that based on prior experience, estimated returns are 10%. The journal entry to record the actual return of $370 of merchandise includes a credit to Returned Inventory for $185. debit to Estimated Inventory Returns for $185 debit to Returned Inventory for $185. credit to Allowance for Sales Returns for $370
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