Short Exercise 5 - 4 Journalizing sales transactions

Journalize the following sales transaction for Salem Sportswear. Explanations are not required. The company estimates sales returns at the end of each month.

Requirements 1. Journalize the purchase transactions. Explanations are not required 2. In the final analysis, how much did the inventory cost Burlington Drug Store? tive 3 S5-4 Journalizing sales transactions Journalize the following sales transactions for Salem Sportswear. Explanations are not required. The company estimates sales returns at the end of each month. Jul. 1 3 5 10 Salem sold $20,000 of men's sportswear for cash. Cost of goods sold is $10,000. Salem sold $62,000 of women's sportswear on account, credit terms are 3/10, n/30. Cost of goods is $31,000. Salem received a $4,500 sales return on damaged goods from the customer on July 1. Cost of goods damaged is $2,250. Salem receives payment from the customer on the amount due, less discount. 3 S-5 Estimating sales returns On December 31, Jack Photography Supplies estimated that approximately 2% merchandise sold will be returned. Sales Revenue for the year was $80,000 with a cost of $48,000. Journalize the adjusting entries needed to account for the estimated returns in purchase and sales transactions