Botanic Choice sells natural supplements to customers with an unconditional sales retum if they are not satisfied. The sales returns extends 60 days. On February 10, 2018, 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 a debit to Allowance for Sales Returns of S800 and a credit to Cost of Goods sold of $400. B. debit to Cash and a credit to Sales Revenue of S4,000 C credit to Estimated Inventory Returns of $400 D.debt to Cost of Goods Sold and credit to inventory for $2,000

Botanic Choice sells natural supplements to customers with an unconditional sales retum if they are not satisfied. The sales returns extends 60 days. On February 10, 2018, 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 a debit to Allowance for Sales Returns of S800 and a credit to Cost of Goods sold of $400. B. debit to Cash and a credit to Sales Revenue of S4,000 C credit to Estimated Inventory Returns of $400 D.debt to Cost of Goods Sold and credit to inventory for $2,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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