Zell Company had sales of $1,800,000 and related cost of merchandise sold of $1,150,000 for its first year of operations ending December 31, 2016. Zell Company provides customers a refund for any returned or damaged merchandise. At the end of the year, Zell Company estimates that customers will request refunds for 1.5% of sales and estimates that merchandise costing $16,000 will be returned. Assume that on February 3, 2017 Anderson Co. returned merchandise with a selling price of $5,000 for a cash refund. The returned merchandise originally cost Zell Company $3,100.
(a) Journalize the adjusting entries on December 31, 2016 to record the expected customer returns.*
(b) Journalize the entries to record the returned merchandise and cash refund to Anderson Co.*
(a) Journalize the adjusting entries on December 31, 2016 to record the expected customer returns. Refer to the Chart of Accounts for exact wording of account titles. Scroll down to see the journal page for recording the returned merchandise and cash refund to Anderson Co.
(b) Journalize the entries to record the returned merchandise and cash refund to Anderson Co. Refer to the Chart of Accounts for exact wording of account titles.
Disregard the charts of accounts. I know which account titles to use just need help with the numbers part. Which number do I debit and which do I credit.
I had put 55000 for letter a and was told I was incorrect
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I am having trouble with this problem that is due tonight. Can someone please help!! I am unsure what to do with the information given after the adjusted trial balance. Do I add those numbers into the adjusted trial balance or
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