Problemduring 2013 its first year of operations hollis, Ask an Expert

Accounting

Problem:

During 2013, its first year of operations, Hollis Industries recorded sales of $10,600,000 and experienced returns of $720,000. Cost of goods sold totaled $6,360,000 (60% of sales). The company estimates that 8% of all sales will be returned. Prepare the year-end adjusting journal entries to account for anticipated sales returns.

Required:

Question 1: Record the anticipated sales return.

Question 2: Record estimated return of inventory.

Note: Please show the work not just the answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91165783

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