Question
Customer allowances and returns Assume the following data for Lusk Inc. before its year-end adjustments: Unadjusted Balances Debit Credit Sales $3,600,000 Cost of Merchandise Sold
Customer allowances and returns
Assume the following data for Lusk Inc. before its year-end adjustments:
| Unadjusted Balances | ||
| Debit | Credit | |
| Sales | $3,600,000 | |
| Cost of Merchandise Sold | $2,100,000 | |
| Estimated Returns Inventory | 1,800 | |
| Customer Refunds Payable | 900 | |
| Estimated cost of merchandise that will be returned in the next year | $15,000 | |
| Estimated percent of refunds for current year sales | 0.8% | |
a. Journalize the adjusting entry for the estimated customer allowances.
Customer allowances and returns
Assume the following data for Lusk Inc. before its year-end adjustments:
| Unadjusted Balances | ||
| Debit | Credit | |
| Sales | $3,600,000 | |
| Cost of Merchandise Sold | $2,100,000 | |
| Estimated Returns Inventory | 1,800 | |
| Customer Refunds Payable | 900 | |
| Estimated cost of merchandise that will be returned in the next year | $15,000 | |
| Estimated percent of refunds for current year sales | 0.8% | |
a. Journalize the adjusting entry for the estimated customer allowances.
Customer allowances and returns
Assume the following data for Lusk Inc. before its year-end adjustments:
| Unadjusted Balances | ||
| Debit | Credit | |
| Sales | $3,600,000 | |
| Cost of Merchandise Sold | $2,100,000 | |
| Estimated Returns Inventory | 1,800 | |
| Customer Refunds Payable | 900 | |
| Estimated cost of merchandise that will be returned in the next year | $15,000 | |
| Estimated percent of refunds for current year sales | 0.8% | |
a. Journalize the adjusting entry for the estimated customer allowances.
Customer allowances and returns
Assume the following data for Lusk Inc. before its year-end adjustments:
| Unadjusted Balances | ||
| Debit | Credit | |
| Sales | $3,600,000 | |
| Cost of Merchandise Sold | $2,100,000 | |
| Estimated Returns Inventory | 1,800 | |
| Customer Refunds Payable | 900 | |
| Estimated cost of merchandise that will be returned in the next year | $15,000 | |
| Estimated percent of refunds for current year sales | 0.8% | |
a. Journalize the adjusting entry for the estimated customer allowances.
Customer allowances and returns
Assume the following data for Lusk Inc. before its year-end adjustments:
| Unadjusted Balances | ||
| Debit | Credit | |
| Sales | $3,600,000 | |
| Cost of Merchandise Sold | $2,100,000 | |
| Estimated Returns Inventory | 1,800 | |
| Customer Refunds Payable | 900 | |
| Estimated cost of merchandise that will be returned in the next year | $15,000 | |
| Estimated percent of refunds for current year sales | 0.8% | |
a. Journalize the adjusting entry for the estimated customer allowances.
Customer allowances and returns
Assume the following data for Lusk Inc. before its year-end adjustments:
| Unadjusted Balances | ||
| Debit | Credit | |
| Sales | $3,600,000 | |
| Cost of Merchandise Sold | $2,100,000 | |
| Estimated Returns Inventory | 1,800 | |
| Customer Refunds Payable | 900 | |
| Estimated cost of merchandise that will be returned in the next year | $15,000 | |
| Estimated percent of refunds for current year sales | 0.8% | |
a. Journalize the adjusting entry for the estimated customer allowances.
Customer allowances and returns
Assume the following data for Lusk Inc. before its year-end adjustments:
| Unadjusted Balances | ||
| Debit | Credit | |
| Sales | $3,600,000 | |
| Cost of Merchandise Sold | $2,100,000 | |
| Estimated Returns Inventory | 1,800 | |
| Customer Refunds Payable | 900 | |
| Estimated cost of merchandise that will be returned in the next year | $15,000 | |
| Estimated percent of refunds for current year sales | 0.8% | |
a. Journalize the adjusting entry for the estimated customer allowances.
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Management Accounting
Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen
6th Edition
0077185536, 978-0077185534
