Answer:
(D) Dr Sales Returns and Allowances 150,000
Cr Sales Refund Payable 150,000
Dr Inventory Returns Estimated 90,000
Cr Cost of goods sold 90,000
Explanation:
Based on the information given The adjusting Journal entry or entries to record the expected sales returns is (are):
Dr Sales Returns and Allowances 150,000
Cr Sales Refund Payable 150,000
[(8%*2,000,000)-10,000]
Dr Inventory Returns Estimated 90,000
Cr Cost of goods sold 90,000
[(8%*1,200,000-6,000]
