Stergell Company Had Sales of $1,500,000 and Related Cost of Goods

question 176

Essay

Stergell Company had sales of $1,500,000 and related cost of goods sold of $920,000 for the year. Stergell estimates that customers will request refunds for 1.5% of sales and estimates that merchandise costing $12,000 will be returned. Journalize the adjusting entries on December 31 to record the expected customer returns.
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Definitions:

Poverty

The state of having insufficient financial resources to meet basic living needs such as food, shelter, and healthcare, leading to a lower quality of life.

Wage Earners

Individuals who receive a regular salary or wages based on the amount of work done, often reflecting a segment of the workforce not receiving salaries from long-term contracts or owning businesses.

Great Britain

An island nation in northwest Europe, consisting of England, Scotland, and Wales, known for its influential role in global politics, economics, and culture.

English Governance

The system of political and administrative organization used in England, characterized by its constitutional monarchy and parliamentary democracy.