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Please show work! Clown Car Customizers Inc. sells automotive accessories. They had cash sales in 2019 of $3,290,000 of goods costing $2,303,000 pre returns (70%
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Clown Car Customizers Inc. sells automotive accessories. They had cash sales in 2019 of $3,290,000 of goods costing $2,303,000 pre returns (70% of selling price). They have a historical return rate of 15% of all sales. 1. Create T accounts for Sales Revenue, COGS, Sales Returns, Refund Liability, and Inventory Est. Returns, and post the given data above as well as the results of other entries in 2019 required below. 2. Create the entry to post $317,000 of returns that actually occurred in 2019. Show your calculations. 3. What is the appropriate adjusting entry for the estimated future returns from the current year's sales? Show your calculations. 4. Create the income statement from Sales Revenue to Gross Profit for CCC for the year ended December 31, 2019. 5. Create the journal entries for the following independent scenarios in 2020, relative to returns from 2019 sales. Post to the T accounts of the Refund Liability and Inventory Est. Returns that were carried over from 2019. a. Actual returns of 2019 sales in 2020 total $135,000. b. Actual returns of 2019 sales in 2020 total $180,000. Clown Car Customizers Inc. sells automotive accessories. They had cash sales in 2019 of $3,290,000 of goods costing $2,303,000 pre returns (70% of selling price). They have a historical return rate of 15% of all sales. 1. Create T accounts for Sales Revenue, COGS, Sales Returns, Refund Liability, and Inventory Est. Returns, and post the given data above as well as the results of other entries in 2019 required below. 2. Create the entry to post $317,000 of returns that actually occurred in 2019. Show your calculations. 3. What is the appropriate adjusting entry for the estimated future returns from the current year's sales? Show your calculations. 4. Create the income statement from Sales Revenue to Gross Profit for CCC for the year ended December 31, 2019. 5. Create the journal entries for the following independent scenarios in 2020, relative to returns from 2019 sales. Post to the T accounts of the Refund Liability and Inventory Est. Returns that were carried over from 2019. a. Actual returns of 2019 sales in 2020 total $135,000. b. Actual returns of 2019 sales in 2020 total $180,000Step by Step Solution
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