For the year ended December? 31, 2019, Davidson Mart had sales of $ 800 comma 00
ID: 2529861 • Letter: F
Question
For the year ended December? 31, 2019, Davidson Mart had sales of $ 800 comma 000$800,000 and cost of goods sold of $ 600 comma 000$600,000. Davidson estimates that approximately 55?% of the merchandise sold will be returned. The adjusting journal entry on December? 31, 2019, would include a? _______.
. credit to Refunds Payable for $ 40 comma 000$40,000
B.
A. debit to Cost of Goods Sold for $ 30 comma 000$30,000
C.
D. debit to Sales Revenue for $ 10 comma 000$10,000
D.
C. credit to Estimated Returns Inventory for $ 30 comma 000
Explanation / Answer
Credit to Refunds Payable for $ 40,000 OptionA is correct