Question

Help making this journal entry!

Now record the estimated cost of the returns. Estimated sales returns of $1,040, with cost of $333.

Answer 1

Answer and Explanation:

The journal entry is shown below

1. Sales Returns & Allowance $1,040

To Accounts Receivable $1,040

(Being the estimated cost of returns is recorded)

Here the sales return and account receivable is recorded as it decreased the sales and decreased the assets

2. Inventory $333

To Cost of goods sold $333

(being the estimated cost of the goods returned is recorded)

Here the inventory and cost of goods sold is recorded as it increased the assets and decreased the expense