Question

In August, Drawing Designs sold $590,000 of merchandise, all sales were in cash The cost of sales for August was $360,000. Based on past experience, Drawing uses an estimated return rate of 6% of sales Record the journal entries for the monthly sales, cost of sales, estimated returns, and cost of estimated returns for August (Record debits first, then credits Exclude explanations from any journal entries) 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 Accounts Debit Credit Date August

Answer 1

classmate Date Page Credit 590,000 Journal Entry (Amourt in Accounts Dobit 590,000 August Cash Ale To Sales Ale (Being Sales made for Cach) 2. Sales retune and allowances the Dr. 35400 iniola To Cash i Beny sales retwin made) Inventory Ale 21600 To Cost of goods sold 21600 (Being Iniondaly Bal increased due to sales return) 35400 Noter: 5 Waicing sota (1) Estimated Sales Return $59ojo oo x fc $354003 (2) Inventory Amount Increases due to sales Return 360.000 x 35400 590,000 $ 21600 this $21600 is Cost of estimated sales retun