E16

Chapter 4 Aocounting for Retail Operations 181 E 4-16 Adjustment for Customer Refunds and Returns Obj.6 Assume the following data for Alpine Technologies for the year ending July 31, 20Y2 $900,000 1.5% $6,000 Sales Estimated percent of sales expected to be refunded or issued an allowance in 20Y3 Estimated cost of inventory expected to be returned in 20Y3 Illustrate the effects of the adjustments for customer refunds and returns on the accounts and financial statements of Alpine Technologies for the year ended July 31, 20Y2