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  1. business
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  3. in the current year, borden corporation had sales

In the current year, Borden Corporation had sales of $2,000,000 and cost of goods sold...

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Question

Accounting

In the current year, Borden Corporation had sales of $2,000,000 and cost of goods sold of $1,200,000. Borden expects returns in
the following year to equal 8% of sales. The unadjusted balance in Inventory Returns Estimated is a debit of $6,000, and the
unadjusted balance in Sales Refund Payable is a credit of $10,000. The adjusting entry or entries to record the expected
is (are):
A)
Accounts Receivable
Sales
B)
Sales returns and allowances
Sales
Cost of Goods Sold
Inventory Returns Estimated
C)
Sales
Sales Refund Payable
Accounts receivable
D)
Sales Refund Payable
Accounts receivable
E)
Sales Returns and Allowances
150,000
Sales Refund Payable
Inventory Returns Estimated
2,000,000
2,000,000
150,000
150,000
90,000
90,000
2,000,000
160,000
1,840,000
150,0000
150,000
150,000
90,000
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