/mybusinesscourse.com/platf Windows MarketplacWindows Medialy Windows DRwisingca
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/mybusinesscourse.com/platf Windows MarketplacWindows Medialy Windows DRwisingcash still tou D100 attempt.php?attempt-16794848page-20 E Men New Revenue Recognition Standard-Adjusting Journal Entries During the year, Butler Corporation sells merchandise on account totaling $5,000,000 with a cost of recognizes that there are $410,000 of sales on account st day return privlege for the merchandlise it sells. At year-end, Butler estimates sales of s1.200,000 (with dise to Butler of $2,000,000, Butler offers its customers credit terms of 1/15, n/30. Butler l elgible for the 1 percent discount at year- t all companles will pay within the discount perlod. Additionally, Butler allows a 90- a cost to Butler of $480,000) remain that are stll within the 90-day return period. From past exper 6 percent of this merchandise is expected to be returned Prepare the perlod-end adjusting journal entries needed for Butler Corporation to comply with the new revenue recognition standard. Butler Corporation's fiscal year-end Is December 31. General Journal Description Debit Credit Allowance for sales discounts Cost of goods sold Estimated inventory return Sales discounts Sales refunds payable Sales returns and allowances eligible for return,Explanation / Answer
Date Accounts and Explanation Debit ($) Credit($) Discount on sales (410000*1%) $ 4,100 Accounts receivable $ 4,100 ( To record the adjusting entry for the discount allowed on credit sales) Sales return (1200000*6%) $ 72,000 Accounts receivable $ 72,000 ( To record the adjusting entry for the sales returns
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