Connect ?? clí Secure l https/ htm Ch. 7 Assessment Help Save & Exit Subm False

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Connect ?? clí Secure l https/ htm Ch. 7 Assessment Help Save & Exit Subm False Value Hardware began 2018 with a credit balance of $32.000 in the allowance for sales retuns account. Sales and cash collections from customers during the year were $650,000 and $610,000, respectively. False Value estimates that 6'% of all sales will be returmec During 2018, customers retumed merchandise for credit of $28,000 to their accounts False Value Hardware offers an unlimited, no questions asked night of return on all products What is the balance in the allowance for sales returns account at the end of 2018? 02580 ) eBook Multiple Choice $11,000 $21,000 on

Explanation / Answer

CALCULATION OF ALLOWANCE FOR SALES RETURN FOR THE YEAR ENDED 2018 Amount Estimated returned of the year =(650,000 X 6%) $                         39,000 Less Opening Balance of allowance for Sales Return = $                         32,000 Net Balance $                           7,000 Less : Material Returnd during the year $                         28,000 Closing Balance at the year end $                       -21,000 So, Answer = Option 2 = $ 21,000

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