On December 1, 2017 Hope company sold on credit to Wish company merchandize having a value...

On December 1, 2017 Hope company sold on credit to Wish company merchandize having a value of 6000 and cost of 3600. Blake estimates that 10% of the merchandize will be returned within the return period.

A.Prepare journal entry for 12/31/2017

B.Prepare all the other necessary entries

Expert Solution

Journal Entries
Date	Account Title and explanation	Debit	Credit

12/31/2017	Sales Return & Allowance ($ 6,000 X 10%)	$ 600
	To Account Receivable		$ 600
	(To Record the provission for sales return)



	Merchandise	$ 600
12/31/2017	To COGS		$ 600
	(To Redeuce the COGS on sales return allowance)

ekkarill92 answered 1 year ago

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