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A company had sales of $30,000,000 all on account, with related cost of goods sold of $12,000,000. Based on an analysis of past sales and

A company had sales of $30,000,000 all on account, with related cost of goods sold of $12,000,000. Based on an analysis of past sales and current economic conditions, it was estimated that 3% of the sales will be returned for refunds. Prepare the journal entry needed to account for the potential returns, assuming that the company uses a perpetual inventory system.

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