Lockwell Co.records estimated future sales returns and allowances.Total sales amount to $1, 600, 000, and, in the past, sales returns and allowances have been 2 1/2% of sales.
Required:
Prepare journal entries to:
a. Record the estimated sales returns and allowances.
b. Record the return of $ \$ 1,000 $ of defective funniture.

Question

Lockwell Co.records estimated future sales returns and allowances.Total sales amount to $1, 600, 000, and, in the past, sales returns and allowances have been 2 1/2% of sales.
Required:
Prepare journal entries to:
 a. Record the estimated sales returns and allowances.
b. Record the return of $ \$ 1,000 $ of defective funniture.

Quizplus · Accepted Answer

The Answer of Lockwell Co.records estimated future sales returns and allowances.Total sales amount to $1, 600, 000, and, in the past, sales returns and allowances have been 2 1/2% of sales.
Required:
Prepare journal entries to:
 a. Record the estimated sales returns and allowances.
b. Record the return of $ \$ 1,000 $ of defective funniture.

Lockwell Co $1,000 \$ 1,000 $1,000 Of Defective Funniture

Lockwell Co $\$ 1,000$ Of Defective Funniture