Answer:
See explanation section.
Explanation:
December 31, 20Y8      Sales         Debit           $72,300
                   Customer Refunds Payable   Credit         $72,300
Note: Calculation: $12,050,000 × 0.6% = $72,300
(As the customers requested refunds for 0.6% of sales, we have to deduct it from total sales to give refund.)
December 31, 20Y8      Estimated Returns Inventory Debit  $53,000
                      Cost of goods sold    Credit          $53,000
Note: As the returned products had the cost of sales, we have to give cost of goods sold journal assuming the company used perpetual inventory system. Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â