Question

2/1/2019	Kramer Corp. sold 100 llama wool hats with pompoms on account for $2,000.
	Cost of each hat is $12.
2/15/2019	Customers returned 4 of the hats because they were itchy.
2/28/2019	Based on past experience, Kramer estimates that the normal rate of return for these
	products is 15% of sales.
	PREPARE THE NECESSARY JOURNAL ENTRIES
	GENERAL JOURNAL

Answer 1

	02-01-2019	Accounts Receivable	$2,000
		Allowance for sales Return and allowances (2000*15%)		300
		Sales		$1,700
		(being sales made on account)
		Cost of good sold (100*12)	$1,200
		inventory		$1,200
		(being COGS recorded)
		Estimated Inventory Return(1200*15%)	180
		Cost of Good sold		180
	2/15/2019	Allowance for sales Return and allowances (4*20)	$80
		Accounts Receivable		$80
		(being sales return recorded)
		Inventory	$48
		Estimated Inventory Return		$48
	2/28/2019	Allowance for sales Return and allowances (300-80)	240
		Sales		240
		Inventory	132
		Estimated Inventory Return (180-48)		132
If any doubt please comment