Beethoven Music Company started business in March $2024.$ Sales for its first year were $$400,000.$ Beethoven priced its merchandise to yield a $45\%$ gross profit based on sales dollars. Industry statistics suggest that $10\%$ of the merchandise sold to customers will be returned. Beethoven estimated its sales returns based on the industry average. During the year, customers returned $$30,000$ in sales. Beethoven uses a perpetual inventory system.

Required:

Prepare the journal entry to record the sale.

Prepare the journal entry to record sales returns.

Prepare the journal entry to record the year$-$end adjusting entry for estimated sales returns. Assume that cash has not yet been collected for merchandise that could yet be returned.

Complete this question by entering your answers in the tabs below.

Prepare the journal entry to record the sale.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

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