In the current year, Laker Corporation had sales of $2,020,000 and cost of goods sold of $1,210,000. Laker expects returns in the following year to equal 6% of sales and 6% of cost of goods sold. The unadjusted balance in Inventory Returns Estimated is a debit of $8,000, and the unadjusted balance in Sales Refund Payable is a credit of $12,000. The adjusting entry or entries to record the expected sales returns is (are):

In the current year, Laker Corporation had sales of $2,020,000 and cost of goods sold of $1,210,000. Laker expects returns in the following year to equal 6% of sales and 6% of cost of goods sold. The unadjusted balance in Inventory Returns Estimated is a debit of $8,000, and the unadjusted balance in Sales Refund Payable is a credit of $12,000. The adjusting entry or entries to record the expected sales returns is (are):

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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