In Its First Month of Business, Clausen Corporation Reports Sales

question 36

Essay

In its first month of business, Clausen Corporation reports sales of $1,750,000 and cost of goods sold of $950,000. Clausen estimates that current and future returns and allowances will equal 4% of those sales. Prepare the October 31 adjusting entries necessary to record the revenue side and cost side estimates for returns and allowances.

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Definitions:

Positive Handling

An approach that focuses on constructive and encouraging methods to manage or interact with people or situations.

Vacancies

Open or unoccupied positions or spaces, often referring to job openings.

Positive Emphasis

The practice of focusing on positive aspects or outcomes in communication to achieve a desired response.

Negative Points

Detrimental aspects, criticisms, or disadvantages associated with a particular situation, proposal, or item.