Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During its first year of operations, Drone Zone Corporation (DZC) bought goods from a manufacturer on account at a cost of $50,000. DZC returned $8,000

image text in transcribed
image text in transcribed
During its first year of operations, Drone Zone Corporation (DZC) bought goods from a manufacturer on account at a cost of $50,000. DZC returned $8,000 of this merchandise to the manufacturer for credit on its account, DZC then sold $38,000 of the remaining goods at a selling price of $64,600. DZC records sales returns as they occur and then records estimated additional returns at year- end. During the year, customers returned goods that had been sold at a price of $6,800. These goods were in perfect condition, so they were put back into DZC's inventory at their cost of $4,000. At year-end, DZC estimated $9,010 of current year merchandise sales would be returned to DZC in the following year, DZC estimates $5,300 as its cost of this merchandise. Prepare journal entries to record DZC's transactions and estimates, assuming DZC uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 0 2 3 4 5 67 8 Record the sale of goods at $64,600. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general Journal DZC returned $8,000 of this merchandise to the manufacturer for credit on its account. DZC then sold $38,000 of the remaining goods at a seling price of $64,600. DZC records sales returns as they occur and then records estimated additional returns at year- end. During the year, customers returned goods that had been sold at a price of $6,800. These goods were in perfect condition, so they were put back into DZC's Inventory at their cost of $4,000. At year-end, DZC estimated $9,010 of current year merchandise sales would be returned to DZC in the following year, DZC estimates $5,300 as its cost of this merchandise. Prepare journal entries to record DZC's transactions and estimates, assuming DZC uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 0 2 3 4 5 67 8 Record the cost of goods sold at $38,000. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry Vlow general Journal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Her Majestys Auditor An Adventure Novel With Steampunk Elements

Authors: Markus Pfeiler

1st Edition

164953339X, 978-1649533395

More Books

Students also viewed these Accounting questions

Question

Apply your own composing style to personalize your messages.

Answered: 1 week ago

Question

Format memos and e-mail properly.

Answered: 1 week ago