Question 01:

During 2017, it is first of operations, ABC company recorded sales of $ 12,720,000 and experienced returns of $864,000, cost of goods sold totaled $ 7,632,000, the company estimates that 7% of all sales will be returned.

Prepare the journal entries for sales, actual returns and year end adjusting entries to account for anticipated sales returns.

please RECORD all the journal entries required (DETAILED SOLUTIONS)