The Estimated Returns Inventory account ________.
A) is an expense account
B) is a liability account
C) is credited when a customer returns merchandise to the seller
D) represents the selling price of goods the company believes it will receive in returns

Question

Quizplus · Accepted Answer

The Estimated Returns Inventory account is credited when a customer returns merchandise to the seller, as it represents the cost of goods expected to be returned.

The Estimated Returns Inventory Account ________