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On December 31, Diane Photography Supplies estimated that $7,000 merchandise sold will be returned with a cost of $3,500. Journalize the adjusting entries needed to ao line of the journal entry table.)

On December 31, Diane Photography Supplies estimated that $7,000 merchandise sold will be returned with a cost of $3,500. Journalize the adjusting entries needed to ao line of the journal entry table.)

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On December 31, Diane Photography Supplies estimated that $7,000 merchandise sold will be returned with a cost of $3,500. Journalize the adjusting entries needed to account for the estimated returns. (Assume the company uses a perpetual inventory system. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) (1) Begin by preparing the entry for the estimated refunds. Do not prepare the entry to record the estimated return of merchandise with this entry. We will do that in the following step. Date Accounts and Explanation Debit Credit Dec. 31 (2) Prepare the entry for the estimated return of merchandise, Date Accounts and Explanation Debit Credit Dec. 31
Transcribed Image Text:On December 31, Diane Photography Supplies estimated that $7,000 merchandise sold will be returned with a cost of $3,500. Journalize the adjusting entries needed to account for the estimated returns. (Assume the company uses a perpetual inventory system. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) (1) Begin by preparing the entry for the estimated refunds. Do not prepare the entry to record the estimated return of merchandise with this entry. We will do that in the following step. Date Accounts and Explanation Debit Credit Dec. 31 (2) Prepare the entry for the estimated return of merchandise, Date Accounts and Explanation Debit Credit Dec. 31
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