Ask Question
11 May, 20:32

Lavender Corporation sells 100 jars of essential oil to Bed, Bath, and Relax on December 1, 20X5, for $10 each. Lavender offers a right to return the product for any reason. Based on past sales, Lavender expects Bed, Bath, and Relax to return 5 jars. What adjusting journal entry, if any, should Lavender record on December 31, 20X5, to reflect Bed, Bath, and Relax's right of return

+3
Answers (1)
  1. 11 May, 23:12
    0
    Sales Returned and Allowances $50

    Allowance for Sales Return and Allowances $50

    Lavender expects 5 jars at $10 each ($50 total) to be returned.

    Explanation:

    Lavender Corporation sells 100 jars of essential oil to Bed, Bath, and Relax on December 1, 20X5, for $10 each. Lavender offers a right to return the product for any reason. Based on past sales, Lavender expects Bed, Bath, and Relax to return 5 jars

    Using the above stated information we get the given data : -

    Sales Returned and Allowances $50

    Allowance for Sales Return and Allowances $50

    Lavender expects 5 jars at $10 each ($50 total) to be returned.

    The adjusting journal entry on December 31 reflects

    The right of return by debiting Sales Returns and Allowances (a contra-revenue account) and Crediting Allowance for Sales Returns and Allowances (a contra-asset account to Accounts Receivable).
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Lavender Corporation sells 100 jars of essential oil to Bed, Bath, and Relax on December 1, 20X5, for $10 each. Lavender offers a right to ...” 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