Question
On December 31, 2020, Deetox Company determined that sales were $7,640,000 for 2020. It is expected that the retail amount of customer returns in 2021
On December 31, 2020, Deetox Company determined that sales were $7,640,000 for 2020. It is expected that the retail amount of customer returns in 2021 will be 2.75% of sales. The cost of these returns is estimated to be $129,650.
Required:
Journalize the two adjusting entries required to account for customer returns on December 31, 2020
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Principles of Auditing and Other Assurance Services
Authors: Ray Whittington, Kurt Pany
19th edition
978-0077804770, 78025613, 77804775, 978-0078025617
