The entry to record a sale of $525 with an estimated return rate of 4% will include a
A)debit to Refund Liability for $21.
B)debit to Sales for $21.
C)credit to Accounts Receivable for $504.
D)credit to Sales for $504.

Question

Quizplus · Accepted Answer

The correct entry to record a sale of $525 with an estimated return rate of 4% involves recognizing the revenue net of the estimated returns. Therefore, the sales amount recorded would be $525 - ($525 * 4%) = $504. This is recorded as a credit to Sales, reflecting the revenue earned net of estimated returns.

The Entry to Record a Sale of $525 with an Estimated