Question

Answer 1

Preparation of Journal Entry to record the sale on July 10, 2020: Journal Entries Date Account Title and Explaination Post. Ref. Debit $ Credit $ $ 740,000.00 2020 Jul. 10 Accounts Receivable Sales Revenue (To record Sales on account) $ 740,000.00 $ 592,000.00 Cost of Goods Sold Merchandise Inventory (To record Cost of Goods Sold) $ 592,000.00 $ 111,000.00 Sales Returns and Allowances ($740000 x 15%) Accounts Receivable (To record estimated Sales returns) $ 111,000.00 $ 88,800.00 Inventory - Right of Return ($592000 x 15%) Cost of Sales on Estimated Returns (To record cost of sales returns estimated) $ 88,800.00