Blossom Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns period extends 60 days. On February 10, 2021, a customer purchases...


Blossom Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns period extends 60 days. On February 10, 2021, a customer purchases $2700 of products (cost $1350). Assuming that based on prior experience, estimated returns are 10%. The journal entry to record the actual return of $120 of merchandise includes a





debit to Returned Inventory for $60.

debit to Estimated Inventory Returns for $60.

credit to Allowance for Sales Returns for $120.

credit to Returned Inventory for $60.



Jun 09, 2022
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