Recording Estimated Returns Fizer recognized sales of $1,000,000 during the year on merchandise with a cost...

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Recording Estimated Returns Fizer recognized sales of $1,000,000 during the year on merchandise with a cost of $520,000. Actual sales returns during the year were $5,600. Based on historical trends, the company estimates returns to be 1.5% of sales. Assuming all sales are on account, record the adjusting entry for estimated sales returns on December 31. Include the cost of goods sold entry. Note: Round your answers to the nearest whole number. Account Name Date Dec. 31 Sales Returns Refund Liability To recorded estimated returns Dec. 31 Inventory-Estimated Returns Cost of Goods Sold To record the cost of estimated returns ◆ ♦ ♦ Dr. 5,600 x 0 0 x 0 ✓ Cr. 0 5,600 x 0 0 x Recording Estimated Returns Fizer recognized sales of $1,000,000 during the year on merchandise with a cost of $520,000. Actual sales returns during the year were $5,600. Based on historical trends, the company estimates returns to be 1.5% of sales. Assuming all sales are on account, record the adjusting entry for estimated sales returns on December 31. Include the cost of goods sold entry. Note: Round your answers to the nearest whole number. Account Name Date Dec. 31 Sales Returns Refund Liability To recorded estimated returns Dec. 31 Inventory-Estimated Returns Cost of Goods Sold To record the cost of estimated returns ◆ ♦ ♦ Dr. 5,600 x 0 0 x 0 ✓ Cr. 0 5,600 x 0 0 x

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Date December 31 Debit Sales Returns Allowance 9400 Credit Estimated Sales Returns 9400 Adjusting en... View the full answer