Nov 30: Gardiner made the adjusting entries for the month to accrue for estimated future returns. Gardiner estimates that 5% of total sales will be returned. assumes that the cost of goods sold is 40% of sales.

1. Prepare the adjusting entry for the estimated sales to be returned.

2. Prepare the entry for the costs of goods sold.

November 3 Sold $450 of merchandise to Manzo's Inc., which paid for the items in cash. The items cost Gardiner $110. November 5 Sold $500 of merchandise to Lomeli Co., which paid by credit card. The credit card company charges Gardiner a fee of 3% on credit card sales. Gardiner's cost of this merchandise was $150. November 10 Sold $1,700 of merchandise to Wakeman Point on account. Terms were 3/10, net 30 . Gardiner's cost of this merchandise was $240. November 11 Sold $1,700 of merchandise to Ample Shoppes on account. Terms were 3/10, net 30 . Gardiner's cost of this merchandise was $1,130. November 12 Sold $1,040 of merchandise to Baja Ridge Inc., on account. Terms were 3/10, net 30 . Gardiner's cost of this merchandise was $416. November 18 Wakeman Point reported that some of the merchandise received was in a different color than ordered so it returned $100 of the merchandise. The cost to Gardiner was $40. November 20 Ample Shoppes paid the balance of what it owed for the purchase on November 11. November 22 Baja Ridge Inc., returned $240 of the merchandise for a refund. Gardiner's cost of the returned merchandise was $96. November 22 Baja Ridge Inc., paid the remaining balance owed for the purchase on November 12. November 23 Sold $5.500 of merchandise to Cologne Co. on account. Terms November 25 Wakeman Point paid the balance of what it owed for the purchase on November 10. November 26 Discovered that Ekwall Enterprises, a customer owing \$200 from a July transaction, declared bankruptcy and there is no chance of collection. Wrote off the balance of Ekwall's account. November 27 Sold $400 of merchandise to Daines's One-Stop-Shop on account. Terms were 3/10, net 30 . Gardiner's cost of this merchandise was $120. November 1-30 Sales on account during the month of November for transactions not listed individually totaled $6,900. Cost of goods sold for these sales totaled $2,760. November 1-30 Credit card sales on account during the month of November for transactions not listed individually totaled $2,200. The credit card company charges Gardiner a fee of 3% on credit card sales. Cost of goods sold for these sales totaled $920. November 1-30 Cash collections on account during the month of November for transactions not listed individually totaled $4,600. (No discounts were taken by these customers.) November 30 Gardiner made the adjusting entries for the month to accrue for estimated future returns. Gardiner estimates that 5% of total sales will be returned. Gardiner assumes that cost of goods sold is 40% of sales. November 30 Gardiner made an adjusting entry to estimate uncollectible account expense for the month of November. Gardiner estimates its uncollectible-account expense as 1% of total credit (on account) sales for the month. November 3 Sold $450 of merchandise to Manzo's Inc., which paid for the items in cash. The items cost Gardiner $110. November 5 Sold $500 of merchandise to Lomeli Co., which paid by credit card. The credit card company charges Gardiner a fee of 3% on credit card sales. Gardiner's cost of this merchandise was $150. November 10 Sold $1,700 of merchandise to Wakeman Point on account. Terms were 3/10, net 30 . Gardiner's cost of this merchandise was $240. November 11 Sold $1,700 of merchandise to Ample Shoppes on account. Terms were 3/10, net 30 . Gardiner's cost of this merchandise was $1,130. November 12 Sold $1,040 of merchandise to Baja Ridge Inc., on account. Terms were 3/10, net 30 . Gardiner's cost of this merchandise was $416. November 18 Wakeman Point reported that some of the merchandise received was in a different color than ordered so it returned $100 of the merchandise. The cost to Gardiner was $40. November 20 Ample Shoppes paid the balance of what it owed for the purchase on November 11. November 22 Baja Ridge Inc., returned $240 of the merchandise for a refund. Gardiner's cost of the returned merchandise was $96. November 22 Baja Ridge Inc., paid the remaining balance owed for the purchase on November 12. November 23 Sold $5.500 of merchandise to Cologne Co. on account. Terms November 25 Wakeman Point paid the balance of what it owed for the purchase on November 10. November 26 Discovered that Ekwall Enterprises, a customer owing \$200 from a July transaction, declared bankruptcy and there is no chance of collection. Wrote off the balance of Ekwall's account. November 27 Sold $400 of merchandise to Daines's One-Stop-Shop on account. Terms were 3/10, net 30 . Gardiner's cost of this merchandise was $120. November 1-30 Sales on account during the month of November for transactions not listed individually totaled $6,900. Cost of goods sold for these sales totaled $2,760. November 1-30 Credit card sales on account during the month of November for transactions not listed individually totaled $2,200. The credit card company charges Gardiner a fee of 3% on credit card sales. Cost of goods sold for these sales totaled $920. November 1-30 Cash collections on account during the month of November for transactions not listed individually totaled $4,600. (No discounts were taken by these customers.) November 30 Gardiner made the adjusting entries for the month to accrue for estimated future returns. Gardiner estimates that 5% of total sales will be returned. Gardiner assumes that cost of goods sold is 40% of sales. November 30 Gardiner made an adjusting entry to estimate uncollectible account expense for the month of November. Gardiner estimates its uncollectible-account expense as 1% of total credit (on account) sales for the month