In August, Contemporary Designs sold $550,000 of merchandise; all sales were in cash. The cost of sales for August was $330,000. Based on past experience, Contemporary uses an estimated return rate of 4% of sales. Record the journal entries for the monthly sales, cost of sales, estimated returns, and cost of estimated returns for August. (Record debits first, then credits. Exclude explanations from any journal entries.) Prepare the journal entry for the monthly sales. (Do not record the cost of sales, we will do that in the next step.) Journal Entry Date August Accounts Debit Credit
In August, Contemporary Designs sold $550,000 of merchandise; all sales were in cash. The cost of sales for August was $330,000. Based on past experience, Contemporary uses an estimated return rate of 4% of sales. Record the journal entries for the monthly sales, cost of sales, estimated returns, and cost of estimated returns for August. (Record debits first, then credits. Exclude explanations from any journal entries.) Prepare the journal entry for the monthly sales. (Do not record the cost of sales, we will do that in the next step.) Journal Entry Date August Accounts Debit Credit
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 27BEB: Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had...
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Transcribed Image Text:In August, Contemporary Designs sold $550,000 of merchandise; all sales were in cash. The cost of sales August was $330,000. Based on past experience, Contemporary uses
for the monthly sales, cost of sales, estimated returns, and cost of estimated returns for August. (Record debits first, then credits. Exclude explanations from any journal entries.)
Prepare the journal entry for the monthly sales. (Do not record the cost of sales, we will do that in the next step.)
Journal Entry
Date
August
Accounts
Debit
Credit
estimated return rate of 4% of sales. Record the journal entries
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