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Elden [556K]
3 years ago
10

On December 31, the company estimates future sales refunds to be $900. As of that date, the company has an unadjusted debit bala

nce in Accounts Receivable of $25,000 and an unadjusted credit balance of $300 in Sales Refunds Payable.
Requried:
Write down the necessary adjusting entry.
Business
1 answer:
dimulka [17.4K]3 years ago
4 0

Answer:

Date      Account titles and Explanation       Debit    Credit

Dec 31   Sales return and allowance               $600

                     Sales refund payable                                $600

                     ($900 - $300)

              (To record the expected refund of sales)

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3 years ago
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Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another. While financial reports do not show opportunity cost, business owners can use it to make educated decisions when they have multiple options before them.

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