Historically, about 5% of the merchandise Thompson Tools, Inc. sells is returned. In the month of March,

Question:

Historically, about 5% of the merchandise Thompson Tools, Inc. sells is returned. In the month of March, Thompson Tools sold merchandise costing $ 546,000 to customers for $ 712,000. The company uses a perpetual inventory system and all sales are on account. What is the estimated amount of sales returns? What is the journal entry to record this sale and estimated return?