Beethoven Music Company started business in March 2018. Sales for its first year were $350,000. Beethoven...

 

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Beethoven Music Company started business in March 2018. Sales for its first year were $350,000. Beethoven priced its merchandise to yield a 45% gross profit based on sales dollars. Industry statistics suggest that 10% of the merchandise sold to customers will be returned. Beethoven estimated its sales returns based on the industry average. During the year, customers returned $27,500 in sales. Beethoven uses a perpetual inventory system. Required: 1. Prepare the journal entry to record the sale. 2. Prepare the journal entry to record sales returns. 3. Prepare the journal entry to record the year-end adjusting entry for estimated sales returns. Assume that cash has not yet been collected for merchandise that could yet be returned. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entry to record the year-end adjusting entry for estirpated sales returns. Assume that cash has not yet been collected for merchandise that could yet be returned. (If no entry is required for a transaction/event, select "No journal entry require in the first account field.) Beethoven Music Company started business in March 2018. Sales for its first year were $350,000. Beethoven priced its merchandise to yield a 45% gross profit based on sales dollars. Industry statistics suggest that 10% of the merchandise sold to customers will be returned. Beethoven estimated its sales returns based on the industry average. During the year, customers returned $27,500 in sales. Beethoven uses a perpetual inventory system. Required: 1. Prepare the journal entry to record the sale. 2. Prepare the journal entry to record sales returns. 3. Prepare the journal entry to record the year-end adjusting entry for estimated sales returns. Assume that cash has not yet been collected for merchandise that could yet be returned. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entry to record the year-end adjusting entry for estirpated sales returns. Assume that cash has not yet been collected for merchandise that could yet be returned. (If no entry is required for a transaction/event, select "No journal entry require in the first account field.)

Answer rating: 100% (QA)

Account titles and Explanation No 1 Accounts receivable Sa... View the full answer