Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The entries are correct. I need help with filling out $$ amounts. 2. Assume that on January 9, Year 2, Cantlay gave $3,800 credit to
The entries are correct. I need help with filling out $$ amounts.
2. Assume that on January 9, Year 2, Cantlay gave $3,800 credit to customers related to the December 10 sales. Prepare the journal entries required on January 9 to record the return of merchandise and the expiration of the return period. Sales Returns and Allowances On December 10, Year 1, Cantlay Inc. made $500,000 in sales on account to various customers. The cost of the merchandise sold is $350,000. Cantlay estimates that 4% of the merchandise will be returned. Cantlay allows customers to return merchandise for a credit or refund within 30 days of purchase. On December 20, Cantlay gave $16,000 credit to various customers related to the return of merchandise. Assume that Cantlay uses a perpetual inventory system. Required: 1. Prepare the journal entries to record the sale on December 10, the return of merchandise on December 3. Assume that on January 9, Year 2, Cantlay gave $4,100 credit to customers related to December 10 sales. Prepare the journal entries required on January 9 to record the return of merchandise and the expiration of the return periodStep 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