Clausen Corporation has estimated for October, based on current sales of $1,750,000 and cost of goods sold of $950,000, that current and future returns and allowances will equal 4% of those sales. Prepare the adjusting entries necessary to record the revenue side and cost side estimates for returns and allowances.

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The Answer of Clausen Corporation has estimated for October, based on current sales of $1,750,000 and cost of goods sold of $950,000, that current and future returns and allowances will equal 4% of those sales. Prepare the adjusting entries necessary to record the revenue side and cost side estimates for returns and allowances.

Clausen Corporation Has Estimated for October, Based on Current Sales