Question

Which of the following does not relate to either of the two adjusting entries for customer refunds, allowances, and returns? a.One entry creates an estimated returns inventory account. b.One entry records the sales of goods to customers. c.One entry creates a customer refund liability account. d.One entry reduces the sales account.

Answer 1

Answer:

a.One entry creates an estimated returns inventory account.

b.One entry records the sales of goods to customers.

Explanation:

If a customer purchased a product on credit and returns that product for a refund, the business would have to make specific adjustments to its financial statements. The company would first make a debit entry to sales returns and allowances that equals the exact amount of the purchase

Answer 2

Answer:

a. One entry creates an estimated returns inventory account.

b. One entry records the sales of goods to customers.

Explanation:

Even though profits and discounts are disadvantageous for organizations, returns will undoubtedly happen in organizations that sell items. The Reverse Logistics Executive Council led a review, including the explanations behind item returns.

The 65 buyer gadgets organizations that finished the overview showed the essential reasons organizations acknowledge item returns are item surrenders, commercial purposes, shipping mistakes, and to adjust stock. At the point when a business gives a discount for an item, it must record for this discount on its fiscal reports.