Question
Rusty Hardware makes only cash sales. It began 2021 with a credit balance of $33,600 in the refund liability account. Sales during 2021 were $760,000.
Rusty Hardware makes only cash sales. It began 2021 with a credit balance of $33,600 in the refund liability account. Sales during 2021 were $760,000. Rusty estimates that 5% of all sales will be returned. During 2021, customers returned merchandise for credit of $31,200 to their accounts.
What is the balance in the refund liability account at the end of 2021?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Cornerstones of Managerial Accounting
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
2nd Canadian edition
978-0176721237, 978-0176530884
