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Prepare the journal entry for the cost of estimated returns.

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In August, Drawing Designs sold $550,000 of merchandise; all sales were in cash. The cost of sales for August was $310,00 Based on past experience, Drawing uses an estimated return rate of 2% of sales. Record the journal entries for the monthly sales, cost of sales, estimated returns, and cost of estimated returns for August. (Record debits first, then credits. Exclude explanations from any journal entries.) Prepare the journal entry for the monthly sales. (Do not record the cost of sales, we will do that in the next step.) Journal Entry Date Accounts Debit Credit August Prepare the journal entry for the cost of sales. Journal Entry Date Accounts Debit Credit August Prepare the journal entry for the estimated returns. Journal Entry Date Accounts Debit Credit August Prepare the journal entry for the cost of estimated returns. Journal Entry