During its first year of operations, Drone Zone Corporation (DZC) bought goods from a manufacturer on account at a cost of $69,000. DZC returned $9,900 of this merchandise to the manufacturer for credit on its account. DZC then sold $57,000 of the remaining goods at a selling price of $83,600. DZC records sales returns as they occur and then records estimated additional returns at year-end. During the year, customers returned goods and were issued gift cards equal in amount to the initial selling price of $8,700. These goods were in perfect condition, so they were put back into DZCs inventory at their cost of $5,900. At year-end, DZC estimated $10,910 of current-year merchandise sales would be returned to DZC in the following year; DZC estimates $7,200 as its cost of this merchandise.

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Journal entry worksheet 12 Record the return of goods by the customer at $8,700. Note: Enter debits before credits. Journal entry worksheet Record the return of goods estimated for the following year at $10,910. Note: Enter debits before credits. Journal entry worksheet