Answer:
1) Debit Account Receivable/Bank Account - Sales Amount
Credit Sales Account - Sales amount
Credit Inventory Account - Cost of the product
Debit Cost of Sales - Cost of the product
2) Debit Sales Account - Sales Amount
Credit Cost of Sales - cost of the product
Credit Account Receivable/ Bank - Refund Amount
Debit Inventory Account- Cost of the product
3)
a)Any increase in returns over estimate
Debit Sales Account - Difference in sales Value
Credit Cost of Sales - Difference in cost of the product
Credit Account Receivable/ Bank - Difference Refund Amount
Debit Inventory Account- Difference in Cost of the product
b) Any Decrease in returns over estimate
Debit Sales Account - Decrease in Sales Amount
Credit Cost of Sales - Decrease in cost of the product
Credit Account Receivable/ Bank - Decrease in refund Amount
Debit Inventory Account- Decrease Cost of the product
Explanation:
