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Two journal entires Record the anticipated sales returns. Record estimated return of inventory....

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Accounting

Two journal entiresimage

Record the anticipated sales returns.

Record estimated return of inventory.

During 2024 , its first year of operations, Hollis Industries recorded sales of $12,300,000 and experienced returns of $790,000. Cost of goods sold totaled $7,380,000 ( 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, assuming that all sales are made on credit and all accounts receivable are outstanding. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field

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