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During its first year of operations, Drone Zone Corporation (DZC) bought goods from a manufacturer on account at a cost of $53,000. DZC returned $8,300 of this merchandise to the manufacturer for credit on its account. DZC then sold $41,000 of the remaining goods. at a selling price of $67,600 DZC records sales returns a they occur and then records estimated additional returns at year-end. During the year, customers returned goods that had been sold at a price of $7,100. These goods were in perfect condition, so they were put back into DZC's inventory at their cost of $4,300 At year-end, DZC estimated $9,310 of current year merchandise sales would be returned to DZC in the following year; DZC estimates $5,600 as its cost of this merchandise Prepare journal entries to record DZC's transactions and estimates, assuming DZC uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

During its first year of operations, Drone Zone Corporation (DZC) bought goods from a manufacturer on account at a cost of $53,000. DZC returned $8,300 of this merchandise to the manufacturer for credit on its account. DZC then sold $41,000 of the remaining goods. at a selling price of $67,600 DZC records sales returns a they occur and then records estimated additional returns at year-end. During the year, customers returned goods that had been sold at a price of $7,100. These goods were in perfect condition, so they were put back into DZC's inventory at their cost of $4,300 At year-end, DZC estimated $9,310 of current year merchandise sales would be returned to DZC in the following year; DZC estimates $5,600 as its cost of this merchandise Prepare journal entries to record DZC's transactions and estimates, assuming DZC uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During its first year of operations, Drone Zone Corporation (DZC) bought goods from a manufacturer on account at a cost of $53,000 DZC returned $8.300 of this merchandise to the manufacturer for credit on its account DZC then sold $41,000 of the remaining goods at a selling price of $67,600. DZC records sales returns as they occur and then records estimated additional returns at year-end. During the year, customers returned goods that had been sold at a price of $7,100. These goods were in perfect condition, so they were put back into DZC's inventory at their cost of $4,300 At year-end, DZC estimated $9.310 of current year merchandise sales would be returned to DZC in the following year, DZC estimates $5.500 as its cost of this merchandise Prepare journal entries to record DZC's transactions and estimates, assuming DZC uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list View journal entry worksheet No ✓ 1 N IN N S 3 2 7 6 5 3 6 4 5 7 8: Transaction • b d e F 9 h Inventory Accounts Payable Accounts Payable Inventory Cash Sales Reverse Cost of Goods Sold Inventory Inventory-Estimated Returns Cash Inventory Cost of Goods Sold General Journal No Journal Entry Required Debit 53,000 8,300 67.600 41.000 7,100 4,300 2 Record the return of goods by the manufacturer at $8,300. Record the sale of goods at $67,600. Record the cost of goods sold at $41,000. 9.310) Credit Record the purchase of goods from a manufacturer on account for $53,000. 53,000 8,300 67.600 41,000 7,100 4.300 9,310 Record the return of goods by the customer at $7,100. Record the cost of goods returned at $4,300. Record the return of goods estimated for the following year at $9,310. Record the cost of goods estimated to be returned in the following year at $5,600. Ⓡ
Transcribed Image Text:During its first year of operations, Drone Zone Corporation (DZC) bought goods from a manufacturer on account at a cost of $53,000 DZC returned $8.300 of this merchandise to the manufacturer for credit on its account DZC then sold $41,000 of the remaining goods at a selling price of $67,600. DZC records sales returns as they occur and then records estimated additional returns at year-end. During the year, customers returned goods that had been sold at a price of $7,100. These goods were in perfect condition, so they were put back into DZC's inventory at their cost of $4,300 At year-end, DZC estimated $9.310 of current year merchandise sales would be returned to DZC in the following year, DZC estimates $5.500 as its cost of this merchandise Prepare journal entries to record DZC's transactions and estimates, assuming DZC uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list View journal entry worksheet No ✓ 1 N IN N S 3 2 7 6 5 3 6 4 5 7 8: Transaction • b d e F 9 h Inventory Accounts Payable Accounts Payable Inventory Cash Sales Reverse Cost of Goods Sold Inventory Inventory-Estimated Returns Cash Inventory Cost of Goods Sold General Journal No Journal Entry Required Debit 53,000 8,300 67.600 41.000 7,100 4,300 2 Record the return of goods by the manufacturer at $8,300. Record the sale of goods at $67,600. Record the cost of goods sold at $41,000. 9.310) Credit Record the purchase of goods from a manufacturer on account for $53,000. 53,000 8,300 67.600 41,000 7,100 4.300 9,310 Record the return of goods by the customer at $7,100. Record the cost of goods returned at $4,300. Record the return of goods estimated for the following year at $9,310. Record the cost of goods estimated to be returned in the following year at $5,600. Ⓡ
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