Make the year-end adjusting journal entries to account

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During 2020, its first year of operations, Vega Inc. recorded sales of $1,200,000. It experienced sales returns of $75,000. Cost of Goods Sold totaled $840,000 (70% of sales). The company estimates that 7% of all sales will be returned.

Problem 1: Make the year-end adjusting journal entries to account for the anticipated sales returns. Assume that all sales are made on credit and that all accounts receivable are outstanding.

Reference no: EM132721869

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