If the ending balance in the allowance for sales returns is


Question - During 2015, Scribb Company's customers returned merchandise for a credit of $17,750 to their accounts. Sales and cash collections from customers during the year were $425,000 and $390,000, respectively. Scribb Company began 2015 with a credit balance of $35,000 in the allowance for sales returns account. If the ending balance in the allowance for sales returns is $38,500, what percentage of sales is expected to be returned? Round our answer to the nearest whole percent.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: If the ending balance in the allowance for sales returns is
Reference No:- TGS02847410

Now Priced at $20 (50% Discount)

Recommended (98%)

Rated (4.3/5)