For the year ended December 31, 2019, Davidson Mart had sales of $ 550 comma 000 and cost of goods sold of $ 412 comma 500. Davidson estimates that approximately 2% of the merchandise sold will be returned. The adjusting journal entry on December 31, 2019, would include a .

Answer and Explanation:

The adjusting entry is as follows

Sales return & allowances ($550,000 × 2%)$11,000  

      Refunds payable$11,000

(Being the recording of  estimated sales return is done)

For recording this we debited the sales returns & allowances as it increased the sales return and credited the refund payable as it also increased the liabilities

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.