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.)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e879227-a4e3-4136-a4a1-e21efb8ffc42%2F69f6c545-55a6-41da-b23a-b43bd491ac75%2F5ztvyz_processed.jpeg&w=3840&q=75)
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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