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Exercise 4-22B Recording estimates of future returns LO P6 Lopez Company reports unadjusted first-year merchandise...

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Exercise 4-22B Recording estimates of future returns LO P6 Lopez Company reports unadjusted first-year merchandise sales of $126,000 and cost of merchandise sales of $31,500. a. Compute gross profit using the unadjusted numbers above. Gross Profit :X This is a numeric cell, so please enter numbers only. The company expects future returns and allowances equal to 4% of sales and 4% of cost of sales. b-182. Prepare the year-end adjusting entry to record the sales expected to be refunded and cost side of sales returns and allowances. View transaction list Journal entry worksheet 1 2 > Record the adjusting entry for expected sales returns (revenue side). Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general Journal

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