Smith Company is a manufacturer of medical devices and has an excellent quality control department, thus defective product returns are rare. In 2018, Smith reported sales of $276,344,000. The company did, however, have two returns in 2018 related to the wrong product model being shipped. Smith’s 2018 journal entry to record a $37,500 return from a customer (Foxtrot Medical) would be:
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Smith Company is a manufacturer of medical devices and has an excellent quality control department,...
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