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11 Cards in this Set
- Front
- Back
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What account do you debit when taking a return on merchandise regardless of whether cash was originally received at the time of purchase or if it was purchased on credit? |
We debit the account called sales returns, sales returns is a contra sales revenue account with a normal balance of debit. |
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What account do you credit when estimating future possible estimates of returns on merchandise for the next. At the end of the year when cash has already been received at the time of purchase? |
We created an account titled refund liability. Refund liability is a contra cash account with a normal credit balance. |
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What account do you credit when recording future possible estimates of returns on merchandise for the next. When cash was not received at their original time of purchase and instead an account receivable was created. |
We created an account titled allowances for sales returns. Allowances for sales returns is an account with a normal balance of credit. Allowances for sales returns is a contra account receivable account and we use this to offset our account receivables. |
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What account do we debit when estimating future returns of merchandise to offset our inventory account? |
We debit an account titled inventory estimated returns. Inventory estimated returns has a normal balance of debit. We debit this account when predicting future estimates of returns on merchandise regardless of whether cash was received at the original time of purchase or accounts receivables.. |
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What accounts are debited and credited during the initial sale of merchandise? |
When we initially record the transaction for sales of merchandise we do the following: we debit either cash or accounts receivable and credit sales revenue. Weaven debit cost of goods sold and credit inventory to reduce our level of inventory to reflect the amount of inventory that has been sold. |
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What account do we debit and credit when we have merchandise returned by the customer when cash was initially received at the time of sale? |
We debit sales returns credit cash and then debit inventory and credit cost of good sold |
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How do we record a transaction in the journal when a customer returns merchandise and an account receivable was created during the initial sale of merchandise? |
We debit Cell returns and then credits accounts receivable and we then debit inventory and credit cost of good sold |
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How do we record future estimates of returns on merchandise 4 cash sales of merchandise? |
We debit Cell returns and credit refund liability and debit inventory estimated returns and credit cost of good sold |
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How do we record the transactions when customers return merchandise from the sales of previous years that have been estimated to be returned from cash sales in the previous year? |
We debit refund liability and credit cash and debits inventory and credit inventory estimated returns |
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How do we record the estimate of returns for the next year from a transaction that was created on account? |
We debit sales returns and credit on account titled allowances for sales returns weaven debit inventory estimated returns and credit cost of good sold |
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How do we record the transaction when customers actually return the merchandise in the next year that has been estimated from the sales of the previous year to be returned? |
We debit allowances for sales returns and credit accounts receivable we then debit inventory and credit inventory estimated return |
