Ask Question
6 December, 17:58

Assume the following data for Lusk Inc. before its year-end adjustments: Debit CreditSales $3,600,000 Cost of Merchandise Sold $2,100,000Estimated Returns Inventory 1800Customer Refunds Payable 900Estimated cost of merchandise that Will be returned in the next year 15,000Estimated percent of refunds for current year sales 0.8%Journalize the adjusting entries for the following: a. Estimated customer allowances b. Estimated customer returns

+4
Answers (1)
  1. 6 December, 21:03
    0
    a. Estimated customer allowances

    December 31, 202x. estimated customer allowance

    Dr Sales 27,900

    Cr Customer refunds payable 27,900

    total estimated refunds payable = $3,600,000 x 0.8% = $28,800 - $900 (account balance) = $27,900

    b. Estimated customer returns

    December 31, 202x. estimated customer returns

    Dr Estimated returns inventory 13,200

    Cr Cost of merchandise sold 13,200

    total estimated returns $15,000 - $1,800 = $13,200

    Explanation:

    Sales $3,600,000

    Cost of Merchandise Sold $2,100,000

    Estimated Returns Inventory $1800

    Customer Refunds Payable $900

    Estimated cost of merchandise that Will be returned in the next year $15,000

    Estimated percent of refunds for current year sales 0.8%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Assume the following data for Lusk Inc. before its year-end adjustments: Debit CreditSales $3,600,000 Cost of Merchandise Sold ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers