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Question
A store sells merchandise to its customers. It knows that, on average, a certain percentage of its sales will be returned by customers. (Amount sold 165,328.93)
(Average percentage of sales which is returned by customers 4.5) (sales tax rate, in percent 5.75) (Amount later returned by a particular customer 209.18)
Make the entries for the sales and for the amount which is estimated that will be returned. (Assume that sales are made for cash.)
Then make a third entry for the amount (see separate sheet) which is returned by a particular customer. The amount returned is the price of the merchandise itself. The customer received that amount plus the sales tax that had been charged.
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