Asked by Hassaan Haider on Jun 28, 2024
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Inventory Returns Estimated is a current asset account used in a period-end adjusting entry to reflect the inventory estimated to be returned in the future.
Current Asset Account
An account on the balance sheet representing the value of assets that are expected to be converted into cash, sold, or consumed within a year or the operating cycle, whichever is longer.
Inventory Returns Estimated
An accounting estimate of the goods that will be returned by customers and subtracted from sales revenue.
Period-End Adjusting Entry
Journal entries made at the end of an accounting period to update the balances of certain accounts and ensure compliance with the accrual basis of accounting.
- Gain an insight into the procedures of recording within periodic and perpetual inventory frameworks.
- Discern the classification of assorted expenses and realize their impact on the earnings report.
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Learning Objectives
- Gain an insight into the procedures of recording within periodic and perpetual inventory frameworks.
- Discern the classification of assorted expenses and realize their impact on the earnings report.
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