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In its first month of business, Clayton Corporation reports sales of $1,750,000 and cost of goods sold of $950,000. Clayton estimates that current and future
In its first month of business, Clayton Corporation reports sales of $1,750,000 and cost of goods sold of $950,000. Clayton estimates that current and future returns and allowances will equal 4% of those sales. Prepare the October 31 adjusting entries necessary to record the revenue side and cost side estimates for returns and allowances.
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