Sam Edwards owns a business called Sam's Stuff. A physical count determined his ending inventory as of December 31, 20-- was $72,000. Based on past experience, Sam estimates that $5,000 of sales from this year will be returned next year. The cost of the merchandise expected to be returned is $3,000. Using the partial Trial Balance provided below, set up T accounts for Merchandise Inventory, Estimated Returns Inventory, Customer Refunds Payable, Sales Returns and Allowances, and Income Summary and prepare the year-end adjustments for Merchandise Inventory and related accounts.

TRIAL BALANCE

(PARTIAL)DEBITCREDITMerchandise Inventory60,000.00Estimated Returns Inventory2,500.00Customer Refunds Payable4,000.00Sales Returns and Allowances20,000.00Income Summary

For grading purposes use the labels shown and enter transactions in alphabetical order.

TB Trial balance (beginning balance)

ATB Adjusted trial balance (ending balance)

(a) Remove the beginning balance in merchandise inventory.

(b) Add the new balance per the physical count.

(c) Adjust the customer refunds balance to the new estimate of next year returns (use one adjusting entry).

(d) Remove the beginning balance in estimated returns inventory.

(e) Add the new balance per the estimate of merchandise expected to be returned.

AssetsMerchandise Inventory

Sam Edwards owns a business called Sam's Stuff. A physical count determined his ending inventory as of December 31, 20 was $72,000. Based on past experience, Sam estimates that $5,000 oi sales from this year will be returned next year. The cost of the merchandise expected to be returned is $3,000. Using the partial Trial Balance provided below, set up T accounts For Merchandise Inventory, Estimated Returns Inventory, Customer Refunds Payable, Sales Returns and Allowances, and Income Summary and prepare the year-end adjustments for Merchandise Inventory and related accounts. TRIAL BALAN C E (PARTIAL) DEBIT CREDIT Merchandise Inventory 60,000.00 Estimated Returns Inventory 2,500.00 Customer Refunds Payable 4,000.00 Sales Returns and AHowances 20,000.00 Income Summary For grading purposes use the labels shown and enter transacons in alphabeb'cal order. TB Trial balance (beginning balance) ATB Adjusted trial balance {ending balance) (a) Remove the beginning balance in merchandise inventory. (b) Add the new ba'ance per the physical count. (c) Adjust the customer refunds balance to the new estimate of next year returns (use one adjusting entry). (d) Remove the beginning balance in esiJ'mated returns inventory. (e) Add the new ba'ance per the estimate of merchandise expected to be returned. Ch 14 Assignment X CengageNOWv2 | Online teachin * * Homework Help - Q&A from Onl X + X C A https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false j Ch 14 Assignment 1 eBook Show Me How Print Item Assets ? 1. EX. 14.01A Merchandise Inventory 2. EX. 14.02A TB (a) ATB 3. EX. 14.03A (b) 4. EX. 14.04A 5. EX. 14.09A Estimated Returns Inventory Liabilities Customer Refunds Payable Owner's Equity Income Summary Check My Work Progress: 2/5 items 3 more Check My Work uses remaining. Previous Next 10:49 AM Type here to search 5/5/2021Ch 14 Assignment X CengageNOWv2 | Online teachin * * Homework Help - Q&A from Onl X + X C A https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false j Ch 14 Assignment 7 eBook Show Me How Print Item ? 1. EX. 14.01A Liabilities 2. EX. 14.02A Customer Refunds Payable 3. EX. 14.03A 4. EX. 14.04A 5. EX. 14.09A Owner's Equity Income Summary Sales Returns and Allowances Check My Work Progress: 2/5 items 3 more Check My Work uses remaining. Previous Next 10:50 AM Type here to search gi 5/5/2021