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please complete the question ACE Company sold goods worth $10,000 on credit to King Co. on April 5, 2019. King could return the goods within
please complete the question
ACE Company sold goods worth $10,000 on credit to King Co. on April 5, 2019. King could return the goods within 10 days for full credit but had to settle the account in 30 days. ACE estimated that an average of 10% of the goods might be returned. The goods cost $25 each and were sold for $50 each. On April 12, King returned 3% of the goods. ACE settled the account as required on May 4. Provide journal entries for ACE Co. for the following dates. Cr. Dr. 10,000 April 5 A/R Revenue (180x50) Right to return liability 9,000 1,000 April 12 Dr. Cr. April 16 Dr. Cr. May 4 Dr. CrStep by Step Solution
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