Question
In: Accounting
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
Solutions
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) | |||
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