Question Completion Status: On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Klein uses the perpetual The journal entry that Klein makes on March 17 is I inventory system and the gross method of accounting for sales QUESTION 36 Which of the following statements regarding sales returns and allowances is not true? O New revenue recognition rules require sellers to report sales net of expetted returns and allowances for annual periods. The Inventory Returns Estimated account is a current liability account. Sales returns and allowances estimates are typically made as period-end adjustments. When sales returns and allowances adjustments are made to sales, an estimate must also be made for the cost side. Sales Refund Payable is a current liability account. UESTION 37 to sque all answers