Smith and Son's Department Store has a policy that allows customers to return merchandise for up to 45 days for a full refund. Based on prior experience, approximately 8% of merchandise sold will be returned.
In November, the store's total sales were $2,500,000, all for cash. The cost of the merchandise sold was $1,600,000. No sales discount is offered for early payment.
In December, within the allowable return period, customers returned merchandise that retailed for $100,000 and that cost $66,000 for a refund.
Prepare the journal entries for these transactions. Omit explanations

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The Answer of Smith and Son's Department Store has a policy that allows customers to return merchandise for up to 45 days for a full refund. Based on prior experience, approximately 8% of merchandise sold will be returned.
In November, the store's total sales were $2,500,000, all for cash. The cost of the merchandise sold was $1,600,000. No sales discount is offered for early payment.
In December, within the allowable return period, customers returned merchandise that retailed for $100,000 and that cost $66,000 for a refund.
Prepare the journal entries for these transactions. Omit explanations

Smith and Son's Department Store Has a Policy That Allows