Customer returns and allowances Instructions Chart of Accounts Journal Instructions Zell Company had sales of $1,800,000 and related cost of merchandise sold of $1,150,000 for its first year of operations ending December 31, 2019. Zell Company provides customers a refund for any returned or damaged merchandise. At the end of the year, Zell Company estimates that customers will request refunds and allowances for 1.5% of sales and estimates that merchandise costing $16,000 will be retumed. Assume that on February 3, 2020, Anderson Co. returned merchandise with a selling price of $5,000 for a cash refund. The retumed merchandise originally cost Zell Company $3,100 Required: (a) Journalize the adjusting entries on December 31, 2019 to record the expected customer returns." (b) Journalize the entries to record the returned merchandise and cash refund to Anderson Co. *Refer to the Chart of Accounts for exact wording of account titles. eBook Calculator Customer returns and allowances Instructions | Chart of Accounts Journal Instructions Chart of Accounts CHART OF ACCOUNTS Z ell Company General Ledger ASSETS REVENUE 410 Sales 110 Cash 120 Accounts Receivable 610 Rent Revenue 125 Notes Receivable 130 Merchandise Inventory EXPENSES 510 Cost of Merchandise Sold 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 521 Delivery Expense 522 Advertising Expense Previous Check My Work eBook Calculator Customer returns and allowances Instructions Chart of Accounts Journal Instructions Chart of Accounts 142 Prepaid Insurance 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 180 Land 526 Salaries Expense 531 Rent Expense 192 Store Equipment 193 Accumulated Depreciation-Sore Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense LIABILITIES 210 Accounts Payable 539 Miscellaneous Expense 216 Salaries Payable 710 Interest Expense 218 Sales Tax Payable 210 Cuctomore Refunde Pavahla Chart of Accounts 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment 531 Rent Expense 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense LIABILITIES 210 Accounts Payable 539 Miscellaneous Expense 216 Salaries Payable 710 Interest Expense 218 Sales Tax Payable 219 Customers Refunds Payable 220 Unearned Rent 221 Notes Payable Chart of Accounts Journal Shaded cells have feedback X All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. JOURNAL Score: 6/51 DATE DESCRIPTION Adjusting Entries POST. REF. DEBIT CREDIT Customer returns and allowances Instructions Chart of Accounts Journal Instructions Zell Company had sales of $1,800,000 and related cost of merchandise sold of $1,150,000 for its first year of operations ending December 31, 2019. Zell Company provides customers a refund for any returned or damaged merchandise. At the end of the year, Zell Company estimates that customers will request refunds and allowances for 1.5% of sales and estimates that merchandise costing $16,000 will be retumed. Assume that on February 3, 2020, Anderson Co. returned merchandise with a selling price of $5,000 for a cash refund. The retumed merchandise originally cost Zell Company $3,100 Required: (a) Journalize the adjusting entries on December 31, 2019 to record the expected customer returns." (b) Journalize the entries to record the returned merchandise and cash refund to Anderson Co. *Refer to the Chart of Accounts for exact wording of account titles. eBook Calculator Customer returns and allowances Instructions | Chart of Accounts Journal Instructions Chart of Accounts CHART OF ACCOUNTS Z ell Company General Ledger ASSETS REVENUE 410 Sales 110 Cash 120 Accounts Receivable 610 Rent Revenue 125 Notes Receivable 130 Merchandise Inventory EXPENSES 510 Cost of Merchandise Sold 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 521 Delivery Expense 522 Advertising Expense Previous Check My Work eBook Calculator Customer returns and allowances Instructions Chart of Accounts Journal Instructions Chart of Accounts 142 Prepaid Insurance 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 180 Land 526 Salaries Expense 531 Rent Expense 192 Store Equipment 193 Accumulated Depreciation-Sore Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense LIABILITIES 210 Accounts Payable 539 Miscellaneous Expense 216 Salaries Payable 710 Interest Expense 218 Sales Tax Payable 210 Cuctomore Refunde Pavahla Chart of Accounts 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment 531 Rent Expense 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense LIABILITIES 210 Accounts Payable 539 Miscellaneous Expense 216 Salaries Payable 710 Interest Expense 218 Sales Tax Payable 219 Customers Refunds Payable 220 Unearned Rent 221 Notes Payable Chart of Accounts Journal Shaded cells have feedback X All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. JOURNAL Score: 6/51 DATE DESCRIPTION Adjusting Entries POST. REF. DEBIT CREDIT