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Sheridan Choke sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns extends 60 days. On February

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Sheridan Choke sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns extends 60 days. On February 10, 2021. a customer purchases $4500 of products cost $2250. Assuming that based on prior experience, estimated returns are 20%. The journal entry to record the expected sales return and cost of goods sold includes a debit to Cash and a credit to Sales Revenue of $4500. debit to Sales Returns and Allowance of $900 and a credit to Allowance for Sales Returns and Allowances of $450. debit to Cost of Goods Sold and credit to Inventory for $2250 credit to Estimated Inventory Returns of $450

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