Answer:
Inventory 56,000 debit
Accounts payable 56,000 credit
Accounts payable 8,600 debit
inventory 8,600 credit
Accounts receivable 70,600 debit
service revenues 70,600 credit
Cost of Goods Sold 44,000 debit
Inventory 44,000 credit
sales returns&allwoance 7,400 debit
Accounts receivable 7,400 credit
Inventory 4,600 debit
Cost of goods sold 4,600 credit
sales returns&allwoance 9,610 debit
Allowance for sales returns 9,610 debit
Explanation:
most are self-explanatory
For the returns we decrease teh accounts receivables and use sales retuns and allowance to latter calcualte net sales.
Next we decrease COGS for the amount of inventory which can be resale.
The last one, we need to decrease the accounts receivables for the expected amount customer will return so we use an allowance account rather than directly decrease accounts receivables. This is the same procedure like expected uncollectible ammounts
