Your company recorded $5 million in cash sales and $1 million in credit sales during...
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Accounting
Your company recorded $5 million in cash sales and $1 million in credit sales during January. $200,000 of cash sales and $50,000 of credit sales were returned during January. Assuming your company accounts for these returns without adjusting the allowance or refund liability accounts (i.e., directly to sales returns), provide the necessary entry or entries for the actual returns in January (you do not need to provide the journal entry for the initial sale). Cost of goods sold are 50% of sales.
a) At year end, your company anticipates an additional $100,000 of cash sales and $30,000 of credit sales will be returned. Provide the necessary journal entry.
b) Given the above information, what was your companys net sales in January?
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