Patty Corp., a public company, delivers 3,200 units to a customer on 1 April for $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.)

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