Answered

Connect with experts and get insightful answers to your questions on IDNLearn.com. Get the information you need from our community of experts who provide accurate and thorough answers to all your questions.

botanic choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. the sales returns extends 60 days. on february 10, 2020, a customer purchases $4,000 of products (cost $2,000). assuming that based on prior experience, estimated returns are 20%. the journal entry to record the expected sales return and cost of goods sold includes a

Sagot :

Tundexiidn

Journal entry includes Debit of $800 to Sales Return

  • Let understand that we have to derive the amount of sales return allowance.

Data given are

Customer purchases = $4,000

Estimated returns = 20%

So, Sales return allowance = $4000 x 20%

Sales returns allowance =  $800

In conclusion, the estimated sales return is $800 and it will be debited as Sales Return Allowance.

Journal entry includes Credit of $400 to Cost of Goods Sold  

  • Let understand that we have to derive the amount of cost of goods sold.

Data given are

Cost = $2,000

Estimated returns = 20%

So, Cost of good sold = $2,000 x 20%

Cost of good sold = $400

In conclusion, the cost of goods sold is $400 and will be Credited to Cost of goods sold.

See similar solution here

brainly.com/question/16529671

Thank you for joining our conversation. Don't hesitate to return anytime to find answers to your questions. Let's continue sharing knowledge and experiences! For trustworthy and accurate answers, visit IDNLearn.com. Thanks for stopping by, and see you next time for more solutions.