Question
Current Attempt in Progress Cullumber Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales return period
Current Attempt in Progress Cullumber Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales return period extends 60 days. On February 10, 2024, a customer purchases $2900 of products (cost $1450). Assuming that based on prior experience, estimated returns are 20%. The journal entry to record the expected sales return and cost of goods sold includes a O debit to Cash and a credit to Sales Revenue of $2900. O credit to Estimated Inventory Returns of $290. O debit to Sales Returns and Allowances of $580 and a credit to Cost of Goods sold of $290. O debit to Cost of Goods Sold and credit to Inventory for $1450.
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