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Eric Company sold $100,000 worth of goods on account to Adam Inc. on June 20 . Eric marks all goods up 25% on cost. Adam

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Eric Company sold $100,000 worth of goods on account to Adam Inc. on June 20 . Eric marks all goods up 25% on cost. Adam has 30 days to return the goods for any reason. On July 1 , Adam returns $8,000 worth of goods. Eric expects to be able to resoll the returned goods at a profit. The journal entries for Eric to record the initial sales on June 20 included debits to Accounts Recelvable for $100,000, and Sales of $80,000. Accounts Receivable for $100,000, and Cost of Goods Sold tor $80,000. Inventory for $100,000, dind Cash tor $80,000. No entry can be made because the items can be returned. Eric Company sold $100,000 worth of goods on account to Adam Inc. on June 20 . Eric marks all goods up 25% on cost. Adam has 30 days to return the goods for any reason. On July 1 , Adam returns $8,000 worth of goods. Eric expects to be able to resoll the returned goods at a profit. The journal entries for Eric to record the initial sales on June 20 included debits to Accounts Recelvable for $100,000, and Sales of $80,000. Accounts Receivable for $100,000, and Cost of Goods Sold tor $80,000. Inventory for $100,000, dind Cash tor $80,000. No entry can be made because the items can be returned

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