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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
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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