Smith and Son's Department Store Has a Policy That Allows

question 88

Essay

Smith and Son's Department Store has a policy that allows customers to return merchandise for up to 45 days for a full refund.Based on prior experience,approximately 8% of merchandise sold will be returned.
In November,the store's total sales were $2,500,000,all for cash.The cost of the merchandise sold was $1,600,000.
On November 30,the company prepared the adjusting entries for sales returns.
In December,within the allowable return period,customers returned merchandise that retailed for $100,000 and that cost $66,000 for a refund.
Prepare the journal entries for these transactions.Omit explanations.

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