Question
Surplus Galore uses the gross method of accounting for sales discounts. Selected data from its records for the year ended December 31 was as follows:
Surplus Galore uses the gross method of accounting for sales discounts. Selected data from its records for the year ended December 31 was as follows:
| Debit | Credit | |
| Sales | $800,000 | |
| Accounts Receivable | $90,000 | |
| Allowance for Sale Discounts | $1,200 | |
| Estimate sales discounts | $1,400 |
Journalize the adjusting entry for estimated sales discounts.
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Financial Accounting
Authors: Robert Libby, Patricia Libby, Frank Hodge
10th Edition
1260481352, 978-1260481358
