For the year ended December 31, 2025, Davidson Mart had sales of $250,000 and cost of goods sold of $187,500. Davidson estimates that approximately 3% of the merchandise sold will be returned. The adjusting journal entry on December 31, 2025, would include a ________. A. debit to Cost of Goods Sold for $5,625 B. credit to Refunds Payable for $7,500 C. credit to Estimated Returns Inventory for $5,625 D. debit to Sales Revenue for $1875

For the year ended December 31, 2025, Davidson Mart had sales of $250,000 and cost of goods sold of $187,500. Davidson estimates that approximately 3% of the merchandise sold will be returned. The adjusting journal entry on December 31, 2025, would include a ________. A. debit to Cost of Goods Sold for $5,625 B. credit to Refunds Payable for $7,500 C. credit to Estimated Returns Inventory for $5,625 D. debit to Sales Revenue for $1875

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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