Global supermarkets run a a moneyback guarantee for anyone, Ask an Expert

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Global supermarkets run a a moneyback guarantee for anyone with unused tomatoes who is not completely satisfied with their aerodynamic qualities. From past history, Global knows that only 2% of the tomatoes will be returned. This year they sell 700,000 kilograms of tomatoes at a price of 0.40 euros per kilo.

1.)Show the adjusting T-account entry necessary to record the libaility created by the money back guarantee
2.)Show the entry Global will have to make when a soggy but happy customer returns a kilo of tomatoes sometime after the adjusting entry in requirement 1 is made.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9972731

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