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1. During 20X1, the first year of operations for ABC Inc., the company sold merchandise for $100,000 cash. The merchandise cost $70,000 ( 70.0 percent

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1. During 20X1, the first year of operations for ABC Inc., the company sold merchandise for $100,000 cash. The merchandise cost $70,000 ( 70.0 percent of the selling price). Industry experience indicates that 8% of all sales will be returned. ABC uses a perpetual inventory system. Suppose customers returned $5,000 of 20X1 sales during 20X1. Also suppose customers returned $4,000 of 20X1 sales during 202. What is the journal entry to record actual returns of 201 sales during 202. (1 point)

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