Question

Estimated Returns Inventory is a.an asset account reported with Inventory on the balance sheet. b.an owner's equity account increasing equity. c.a liability account with a normal credit balance. d.None of these choices, since this account does not exist.

Answer 1

a).an asset account reported with Inventory on the balance sheet.

Step-by-step explanation:

The estimate returns inventory is an an asset account reported with Inventory on the balance sheet.

When a costumer buy inventory then he pays in two way.The receive amount from the costumer can be divide in two way ,first the amount for the inventory which were buy and the second amount the amount for the inventory holding until it did not sold.

a.an asset account reported with Inventory on the balance sheet.