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Record the sale. Record cost of goods sold. Beethoven Music Company started business in March 2016. Sales for its first year were $420,000. Beethoven priced
Record the sale.
Record cost of goods sold.
Beethoven Music Company started business in March 2016. Sales for its first year were $420,000. Beethoven priced its merchandise to yield a 35% gross profit based on sales dollars. Industry statistics suggest that 10% of the merchandise sold to customers will be returned. Beethoven estimated its sales returns based on the industry average. During the year, customers returned $31,000 in sales. Beethoven uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Required: Prepare the journal entry to record the saleStep by Step Solution
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