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Beethoven Music Company started business in March 2016. Sales for its first year were $470,000. Beethoven priced its merchandise to yield a 40% gross profit
Beethoven Music Company started business in March 2016. Sales for its first year were $470,000. Beethoven priced its merchandise to yield a 40% 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 $33, 500 in sales. Beethoven uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Prepare the journal entry to record the sale
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