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Unformatted text preview: To record actual returns of $78,000 (assuming other returns may occur later): (Debit) Inventory $unit cost (Credit) Cost of Good Sold $unit cost 2 (Debit) Expected Sales Refund Liability $78,000 (Credit) Cash or Gift Card or Store Credit to customer $78,000 (Debit) Sales Revenue $78,000 (Credit) Expected Sales Returns and Allowances $78,000 3...
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- Revenue, Double-entry bookkeeping system, Sales Refund Liability