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During 2021, its first year of operations, Hollis Industries recorded sales of $12,400,000 and experienced returns of $680,000. Cost of goods sold totaled $8,060,000 (65%
During 2021, its first year of operations, Hollis Industries recorded sales of $12,400,000 and experienced returns of $680,000. Cost of goods sold totaled $8,060,000 (65% of sales). The company estimates that 7% of all sales will be returned. Prepare the year-end adjusting journal entries to account for anticipated sales returns, assuming that all sales are made on credit and all accounts receivable are outstanding. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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