Lockwell Co $\$ 1,000$ Of Defective Funniture

question 22

Essay

Lockwell Co.records estimated future sales returns and allowances.Total sales amount to $1, 600, 000, and, in the past, sales returns and allowances have been 2 1/2% of sales.
Required:
Prepare journal entries to:
a. Record the estimated sales returns and allowances.
b. Record the return of $\$ 1,000$ of defective funniture.

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Definitions:

Achieving Legitimacy

The process by which an entity gains acceptance and rightfulness in the eyes of its stakeholders, often through meeting certain standards or norms.

Good Deeds

Actions performed with the intention of benefiting others without expecting anything in return.

Establishing Legitimacy

The process through which an entity or individual gains acceptance, credibility, and recognition by adhering to societal norms, standards, or laws.

Stakeholders

Individuals, groups, or organizations that are affected by, or have an interest in, the operations and outcomes of a particular project, program, or policy.