Answer:
Explanation:
The journal entries are shown below:
1. Sales revenue A/c Dr $128,000
To Sales return and Allowances $128,000
(Being return sales is recorded)
The computation is shown below:
= Recorded sales × estimated returned percentage - experienced returns
= $10,600,000 × 8% - $720,000
= $848,000 - $720,000
= $128,000
2. Inventory A/c Dr $76,800 ($128,000 × 60%)
To Cost of goods sold $76,800
(Being returned cost of goods sold recorded)
