Adjustments for a Merchandising Business: Perpetual Inventory System with Sales Returns and Allowances A partial Trial Balance for Curless Company as of December 31, 20-- is shown. Curless Company Partial Trial Balance For Year Ended December 31, 20-- ACCOUNT TITLE DEBIT BALANCE CREDIT BALANCE Merchandise Inventory 151,000.00 Estimated Returns Inventory 800.00 Customer Refunds Payable 450.00 Sales 426,000.00 Sales Returns and Allowances 19,000.00 Cost of Goods Sold 288,000.00 Curless has made the following estimates for next year: • Sales made this year of $9,800 will be returned next year and customers will be granted full refunds. • The estimated cost of the inventory sold this year and expected to be returned by customers next year is $5,900. Open T accounts and enter the balances for the above accounts. Make appropriate adjustments to the T accounts. For grading purposes use the labels shown. TB Trial balance (beginning balance) ATB Adjusted trial balance (ending balance) (1) Adjust the liability for refunds to the current estimate. (2) Adjust Estimated Returns Inventory to the current estimate.
Adjustments for a Merchandising Business: Perpetual Inventory System with Sales Returns and Allowances A partial Trial Balance for Curless Company as of December 31, 20-- is shown. Curless Company Partial Trial Balance For Year Ended December 31, 20-- ACCOUNT TITLE DEBIT BALANCE CREDIT BALANCE Merchandise Inventory 151,000.00 Estimated Returns Inventory 800.00 Customer Refunds Payable 450.00 Sales 426,000.00 Sales Returns and Allowances 19,000.00 Cost of Goods Sold 288,000.00 Curless has made the following estimates for next year: • Sales made this year of $9,800 will be returned next year and customers will be granted full refunds. • The estimated cost of the inventory sold this year and expected to be returned by customers next year is $5,900. Open T accounts and enter the balances for the above accounts. Make appropriate adjustments to the T accounts. For grading purposes use the labels shown. TB Trial balance (beginning balance) ATB Adjusted trial balance (ending balance) (1) Adjust the liability for refunds to the current estimate. (2) Adjust Estimated Returns Inventory to the current estimate.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Assets
Merchandise Inventory
______ __________
Estimated Returns Inventory
________ _____________
________ ____________
________ ____________
Liabilities
Customer Refunds Payable
___________ ___________
___________ ___________
___________ ___________
Owner's Equity
Revenues
Sales
___________ ____________
Sales Returns and Allowances
__________ _____________
_________ _____________
_________ _____________
Expenses
Cost of Goods Sold
__________ _____________
_________ ______________
_________ ____________
Transcribed Image Text:Adjustments for a Merchandising Business: Perpetual Inventory System with Sales Returns and Allowances
A partial Trial Balance for Curless Company as of December 31, 20-- is shown.
Curless Company
Partial Trial Balance
For Year Ended December 31, 20--
ACCOUNT TITLE
DEBIT BALANCE
CREDIT BALANCE
Merchandise Inventory
151,000.00
Estimated Returns Inventory
800.00
Customer Refunds Payable
450.00
Sales
426,000.00
Sales Returns and Allowances
19,000.00
Cost of Goods Sold
288,000.00
Curless has made the following estimates for next year:
• Sales made this year of $9,800 will be returned next year and customers will be granted full refunds.
• The estimated cost of the inventory sold this year and expected to be returned by customers next year is $5,900.
Open T accounts and enter the balances for the above accounts. Make appropriate adjustments to the T accounts.
For grading purposes use the labels shown.
TB Trial balance (beginning balance)
ATB Adjusted trial balance (ending balance)
(1) Adjust the liability for refunds to the current estimate.
(2) Adjust Estimated Returns Inventory to the current estimate.
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