Sales returns account at the end of 2013 ? General accounting False Value Hardware began 2013 with a credit balance of $31,500in the allowance for sales returns account. Sales and cashcollections from customers during the year were $570,000 and$530,000, respectively. False Value estimates that 4% of all saleswill be returned. During 2013, customers returned merchandisefor a credit of $20,000 to their accounts.What is the balance in the allowance for sales returns account atthe end of 2013?a. $34,300.b. $11,500.c. $42,800.d. $22,800.

Step 1: Define Sales ReturnsThe sales returns and allowances represent contra-revenue accounts with…

Answered: False Value Hardware began 2013 with a…

Principles of Accounting Volume 1

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Chapter9: Accounting For Receivables

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Problem 10EA: Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning...

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Sales returns account at the end of 2013 ?
What percentage of sales is expected to be returned on these general accounting question?
General accounting
At the beginning of 2009, Pental Company had the following balances: A/R = $122,000 Allowance for Uncollectible Accounts = $7,900 During 2009, their credit sales were $1,173,000 and collections on A/R were $1,150,000. The following additional transactions occurred during the year: Feb 17, wrote off XXX Account, $3.600 May 28, wrote off YYY Account, $2,400 Dec 15, wrote off ZZZ Account, $900 Dec 31, recorded bad debts expense assuming that Penman's policy is to record bad debts expense at 0.8% of credit sales (Hint: The allowance account is increased by 0.8% of credit sales regardless of write-offs.) Compute the ending balance in A/R and the allowance for uncollectible accounts. Show how Pental's Dec 31, 2009 balance sheet reports the two accounts.
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Santa Maria Widget reviewed the following information from its accounting records for the year ended December 31, 2011, before adjustment:Sales during 2011$800,000Credit Sales are 80% of salesCollections from customers in 2011590,000Accounts Receivable 165,000Allowance for Uncollectible Accounts (before adjustment)2,050 credit Santa Maria Widget uses the percent-of-sales method, at 1.5%, to estimate uncollectible accounts for 2011. The president of the company wants to change to the aged accounts receivable method and estimates $7,500 as the uncollectible amount for 2011. For each method of determining the estimate amount, you are to provide: 1. the adjusting Journal entry. 2. the ending balance in the Allowance account. 3. the net realizable value of accounts receivable. my answer was: 1) Bad Debt Expense $9,600 Allowance for uncollectible accounts $9,600 2) Ending balance in allowance account $11,650 3)Net…
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