In

AugustAugust,

ModernModern

Designs sold

$ 530 comma 000$530,000

of merchandise; all sales were in cash. The cost of sales for

AugustAugust

was

$ 350 comma 000$350,000.

Based on past experience,

ModernModern

uses an estimated return rate of

44%

of sales. Record the journal entries for the monthly sales, cost of sales, estimated returns, and cost of estimated returns for

AugustAugust.

(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