What is the balance in the allowance for sales returns account at the end of 2009?

Name: What is the balance in the allowance for sales returns account at the end of 2009?
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Question

Quizplus · Accepted Answer

The balance in the allowance for sales returns account at the end of 2009 is $43,000, which is calculated as follows: 
Beginning balance of $32,000 + addition for estimated returns during the year of $39,000 ($650,000 x 6%) - actual returns during the year of $28,000 = $43,000. Therefore, choice C is the correct answer.

What Is the Balance in the Allowance for Sales Returns