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Recording Estimated Returns Fizer recognized sales of $1,250,000 in 2020 on merchandise with a cost of $650,000. Actual sales returns in 2020 were $7,000. Based
Recording Estimated Returns
Fizer recognized sales of $1,250,000 in 2020 on merchandise with a cost of $650,000. Actual sales returns in 2020 were $7,000. Based on historical trends, the company estimates returns to be 1.5% of sales. Assuming all sales are on account, record the adjusting entry for estimated sales returns on December 31, 2020.
Note: Round your answers to the nearest whole number.
Date. Account name dr. cr.
Dec 31 (Blank)
(Blank)
Dec 31 (Blank)
(Blank)
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