The journal entry to record the expected sales return and cost of goods sold includes a_____________
a.credit to Refund Liability for $200.
Explanation:
- Ivanhoe Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns extends 60 days. On February 10, 2021, a customer purchases $3000 of products (cost $1500). Assuming that based on prior experience, estimated returns are 10%. The journal entry to record the expected sales return and cost of goods sold includes a_____________
- a.credit to Refund Liability for $200.
- The refund liability shows the amount of consideration that means the company does not expect to be entitled because it will be refunded to customers.
- The liability should be represented for the amount of revenue expected to be refunded.
- Also the returns and refunds are disadvantageous for business for a product.
Answer:
treasury
Explanation:
Treasury shares are shares that have been issued and later repurchased by the company. They decrease the total number of shares outstanding .
Treasury shares are not used to calculate earnings per share
treasury shares do not have voting rights
Treasury stock is a contra equity account recorded in the shareholder's equity
A written statement is the Answer
Hope this helps
Hello new friend I’m very nice