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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 and were issued gift cards equal in amount to the initial selling 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 as they occur and then records estimated additional returns at year-end. During the year, customers returned goods and were issued gift cards equal in amount to the initial selling 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 and were issued gift cards equal in amount to the initial selling 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.) View transaction list Journal entry worksheet 1 2 3 Transaction 1 Note: Enter debits before credits. 4 5 6 Record the purchase of goods from a manufacturer on account for $53,000. General Journal 7 8 Debit Credit
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 and were issued gift cards equal in amount to the initial selling 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.) View transaction list Journal entry worksheet 1 2 3 Transaction 1 Note: Enter debits before credits. 4 5 6 Record the purchase of goods from a manufacturer on account for $53,000. General Journal 7 8 Debit Credit
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