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In its first year of business, Borden Corporation had sales of $2,170,000 and co...

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In its first year of business, Borden Corporation had sales of $2,170,000 and cost of goods sold of $1,285,000. Borden expects returns in the following year to equal 6% of sales and 6% of cost of goods sold. The adjusting entry or entries to record the expected sales returns is (are):

Account Title	Debit	Credit
Sales returns and allowances	130,200
Sales		130,200
Cost of Goods Sold	77,100
Inventory Returns Estimated		77,100

Account Title	Debit	Credit
Sales Refund Payable	130,200
Accounts Receivable		130,200

Account Title	Debit	Credit
Sales	2,170,000
Sales Refund Payable		130,200
Accounts Receivable		2,039,800

Account Title	Debit	Credit
Sales Returns and Allowances	130,200
Sales Refund Payable		130,200
Inventory Returns Estimated	77,100
Cost of goods sold		77,100

100%

Account Title	Debit	Credit
Accounts Receivable	2,170,000
Sales		2,170,000

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