Question

prepare journal entry for cost of sales

In August, Drawing Designs sold $590 000 of merchandise, al sales were in cash The cost of sales for August was $360,000. Based on past experience, Drawing users 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 retums for August. (Record debits first, then credits Exclude explanations from anyjournal entries) Prepare the journal entry for the monthly sales. Do not record the cost of sales, we will do that is the next stop) Journal Entry Date Accounts Deb Credit August Cash 590,000 Sales Revenge 500.000 Prepare the oumal entry for the cost of sales Journal Entry Accounts Debat Credit Date August

Answer 1

Date	Accounts	Debit	Credit
August	Cash	590000
	Sales revenue		590000
August	Cost of goods sold	360000
	Inventory		360000
August	Sales returns and allowances	35400
	Sales refunds payable (6% x $590000)		35400
August	Inventory returns estimated	21600
	Cost of goods sold (6% x $360000)		21600

Kindly use appropriate accounts as required since no list of accounts is provided with the question. For any clarifications, write under the comments section.