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On May 5, Davos Ltd. sells goods for $11,000 on credit and the cost to Davos Ltd. was $6,000. Davos Ltd. expects a retur
Posted: Thu May 19, 2022 11:55 am
by answerhappygod
- On May 5 Davos Ltd Sells Goods For 11 000 On Credit And The Cost To Davos Ltd Was 6 000 Davos Ltd Expects A Retur 1 (33.02 KiB) Viewed 41 times
On May 5, Davos Ltd. sells goods for $11,000 on credit and the cost to Davos Ltd. was $6,000. Davos Ltd. expects a return rate of 5%. On May 21, goods with a selling price of $300 and a cost of $164 are returned for credit and restored to inventory. The journal entry to record the return will include: a) debit to Accounts Receivable for $300 b) credit to Inventory for $164 c) credit to Estimated Inventory Returns for $164 d) credit to Refund Liability for $300