Patty Corp., a public company, delivers $3,200$ units to a customer on $1$ April for $$\frac{80}{?}$ unit. Patty Corp. has a return policy where they allow any customer to return any unused product within $45$ days and receive a full refund. The cost of each product is $$64.$ Based on historical experience Patty estimates that customer will return $2\%$ of the units sold. Patty expects to be able to resell any returned goods.

Assume that $50$ products are returned on $2$ May. No additional units are returned by $15$ May $($the end of the return period$).$

Required:

Prepare the journal entries related to the sale of products. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

Prepare the journal entry required on $15$ May to record any adjustments required to cost of goods sold:

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[15$ May,Inventory,$3,200,],[,$Right of recovery asset,,$3,200],[,,,]]$