Jolly Photography Supplies

Supplies estimated that approximately 1% of merchandise sold will be returned.

At December 31, Jolly Photography Supplies estimated that approximately 1% of merchandise sold will be returned Sales Revenue for the year was 590,000 with a cost of $50,000 Joumalize the adjusting entries needed to account for the estimated retus Assume the company is a perpetual inventory System Records Best the credits. Select the explanation on the last line of the journal y table) (1) Bejby ring the entry for the estimatedrelands Do not prepare the entry to record the estimated return of merchandise with this entry we will do that in the following Date Accounts and Explanation Debit Credi Dar (2) Prepare the entry for the estimated return of merchandise Date Accounts and Explanation Debit Credi Dec 31 (1) Begin by preparing the entry for the estimated refunds. Do not prepare the entry to record the estimated return of merchandise with this entry. We w Date Accounts and Explanation Debit Credit Dec. 31 Accounts Receivable Cash Common Stock Cost of Goods Sold (2) Prepare the Dividends Estimated Returns Inventory Date Merchandise Inventory Dec 31 Refunds Payable Retained Earnings Sales Revenue Debit Credit