Question

3 - SI 10) Question Help ents In August, Exterior Designs sold $580,000 of merchandise, all sales were in cash. The cost of sales for August was $320,000. Based on past experienon, Exterior uses an estimated return rate of 6% of sales. Record the journal entries for the monthly sales, cost of sales, estimated returns, and cost estimated returns for August (Record debits first, then credits. Exclude explanations from any journal entries.) mework Quiz/Test Prepare the journal entry for the monthly sales. (Do not record the cost of sales, we will do that in the next step.) Journal Entry Debit Accounts Date Credit August

Answer 1

No	Date	Accounts	Debit	Credit
1)	August	Cash	$ 580,000
		Sales revenue		$ 580,000
		( To record monthly sales )
2)	August	Cost of goods sold	$ 320,000
		Inventory		$ 320,000
		(To record cost of sales )
3)	August	Sales returns ($ 580,000 *6%)	$ 34,800
		Cash		$ 34,800
		(To record Estimated sales )
4)	August	Inventory ($320,000 *6%)	$ 19,200
		Cost of goods sold		$ 19,200
		(To record Cost of Estimated sales )