Question

Lopez Company reports unadjusted first-year merchandise sales of $100,000 and cost of merchandise sales of$30,000.

d. Is Inventory Returns Estimated an asset, liability, or equity account?

Solution

Verified
Answered 9 months ago
Answered 9 months ago
Step 1
1 of 2

Inventory Returns Estimated is an account that used by the seller for the amount of merchandise that is expected to return by the buyers in the future.
It is recorded as a current asset in the balance sheet and is normally listed after the Merchandise Inventory account. Inventory Returns Estimated has a normal debit balance in the ledger.

Create an account to view solutions

By signing up, you accept Quizlet's Terms of Service and Privacy Policy
Continue with GoogleContinue with Facebook

Create an account to view solutions

By signing up, you accept Quizlet's Terms of Service and Privacy Policy
Continue with GoogleContinue with Facebook

More related questions

1/2

1/3