Question
Dusty Balloons sold 20,000 bags of party balloons during the month of June at a price of $15/bag (cost/bag = $9.30). The company offers a
Dusty Balloons sold 20,000 bags of party balloons during the month of June at a price of $15/bag (cost/bag = $9.30).
The company offers a full refund to unsatisfied customers for any product returned within 30 days from the date of purchase.
Based on historical experience, Dusty Balloons expects that 12% of sales will be returned.
How much Revenue should Dusty Balloons recognize in June?
How much Estimated Inventory Returns should Dusty Balloons recognize in June?
How much Cost of Goods Sold should Dusty Balloons recognize in June?
For the revenue part, I already know what the answer is but I do not understand how to get it.
Please help.
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Accounting Cases In Hong Kong The First Hksa Case Competition
Authors: HKSA Case, Monograph Work GP
1st Edition
9629370883, 978-9629370886
