During 2024, its first year of operations, Hollis Industries recorded sales of $10,600,000 and experienced returns...

Transcribed Image Text:

During 2024, 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 under the assumption that all sales are made for cash (no accounts receivable are outstanding). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Transaction 1 1 Sales returns Refund liability Answer is not complete. General Journal Debit Credit 128,000 128,000 76,800 76,800 Inventory estimated returns Cost of goods sold During 2024, 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 under the assumption that all sales are made for cash (no accounts receivable are outstanding). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Transaction 1 1 Sales returns Refund liability Answer is not complete. General Journal Debit Credit 128,000 128,000 76,800 76,800 Inventory estimated returns Cost of goods sold

Answer rating: 100% (QA)

To reflect financial statements accurately we have to rec... View the full answer