3)Review the following sales transactions for Birdy Birdhouses and record any required journal entries

Accounting Jan 18, 2021

3)Review the following sales transactions for Birdy Birdhouses and record any required journal entries. Aug. 10 Birdy Birdhouses sells 20 birdhouses to customer Julia Brand at a price of $113 each in exchange for cash. The cost to Birdy is $13 per birdhouse. Aug. 14 Julia discovers 6 of the birdhouses are slightly damaged from the August 10 purchase and returns them to Birdy for a full refund.

Expert Solution

Date	General Journal	Debit	Credit
Aug 10	Cash	2,260
	Sales Revenue ($113 x 20)		2,260

	Cost of Goods Sold ($13 x 20)	260
	Inventory		260

Aug 14	Sales Return and Allowance ($113 x 6)	678
	Cash		678

	Inventory	78
	Cost of Goods Sold ($13 x 6)		78

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