Question: Brief Exercise 7-6 Sales returns [LO7-4] During 2013, its first year of operations, Hollis Industries recorded sales of $11,100,000 and experienced returns of $800,000. Cost

Brief Exercise 7-6 Sales returns [LO7-4]

During 2013, its first year of operations, Hollis Industries recorded sales of $11,100,000 and experienced returns of $800,000. Cost of goods sold totaled $6,660,000 (60% of sales). The company estimates that 9% of all sales will be returned. Prepare the year-end adjusting journal entries to account for anticipated sales returns.

General Journal	Debit	Credit

There should be 2 entries

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