Adjusting entry for gross method Obj. 4 The following data were extracted from the accounting records of Sacajawea Mercantile Co. for the year ended June 30, 20Y4:

June 30, 20Y4 Balances Debit Credit Sales $10,000,000 Accounts Receivable $850,000 Allowance for Sales Discounts 400 Estimated sales discounts that will be taken in fiscal year ending June 30, 20Y4……

$ 7,000

a. Journalize the June 30, 20Y4, adjusting entry for estimated sales discounts.

b. How would sales and accounts receivable be reported on the financial statements for the year ending June 30, 20Y4?

AppendixLO1