Lacey Company recorded sales of $6,800,000 for the year ended December 31, 2020. During 2020, the...

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Lacey Company recorded sales of $6,800,000 for the year ended December 31, 2020. During 2020, the company recorded actual returns and allowances of $85,000. As of December 31, 2020, Lacey estimates sales returns at 3% of current year sales. It is the company's policy to provide refunds on account. Lacey uses a perpetual inventory system and records estimated returns at the end of the period. The balance in Refund Liability is $61,200 and the balance in Inventory- Estimated Returns is $24,480 on January 1, 2020. a. Prepare the Journal entries to record sales in 2020 assuming all sales are on account. Cost of goods sold is 40% of the selling price. b. Prepare the journal entries to record actual returns in 2020. c. Prepare the adjusting entries, if any, related to estimated returns on December 31, 2020. Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers a. Account Name Dr. Cr. To record sales To record cost of sales b. Account Name Dr. Cr. To record sales returns To record cost of sales returns С. Account Name Dr. Cr. To record estimated sales returns To record cost of estimated sales returns Lacey Company recorded sales of $6,800,000 for the year ended December 31, 2020. During 2020, the company recorded actual returns and allowances of $85,000. As of December 31, 2020, Lacey estimates sales returns at 3% of current year sales. It is the company's policy to provide refunds on account. Lacey uses a perpetual inventory system and records estimated returns at the end of the period. The balance in Refund Liability is $61,200 and the balance in Inventory- Estimated Returns is $24,480 on January 1, 2020. a. Prepare the Journal entries to record sales in 2020 assuming all sales are on account. Cost of goods sold is 40% of the selling price. b. Prepare the journal entries to record actual returns in 2020. c. Prepare the adjusting entries, if any, related to estimated returns on December 31, 2020. Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers a. Account Name Dr. Cr. To record sales To record cost of sales b. Account Name Dr. Cr. To record sales returns To record cost of sales returns С. Account Name Dr. Cr. To record estimated sales returns To record cost of estimated sales returns

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Answer Particulars Debit Credit A Acs receivable 6800000 Sales ... View the full answer