Question: Brief Exercise 7-6 Sales returns [LO7-4] During 2018, its first year of operations, Hollis Industries recorded sales of $10,500,000 and experienced returns of $750,000. Cost

Brief Exercise 7-6 Sales returns [LO7-4] During 2018, its first year

Brief Exercise 7-6 Sales returns [LO7-4] During 2018, its first year of operations, Hollis Industries recorded sales of $10,500,000 and experienced returns of $750,000. Cost of goods sold totaled $7,350,000 (70% 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, assuming that all sales are made on credit and all accounts receivable are outstanding. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 Record the anticipated sales returns Note: Enter debits before credits. Event General Journal Debit Credit

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