On July 10, 2015, Amodt Music sold CDs to retailers on account and recorded sales revenue of
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On July 10, 2015, Amodt Music sold CDs to retailers on account and recorded sales revenue of €700,000 (cost €560,000). Amodt grants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2015, retailers returned CDs to Amodt and were granted credit of €78,000. Prepare Amodt’s journal entries to record
(a) the sale on July 10, 2015, and
(b) €78,000 of returns on October 11, 2015.
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Related Book For
Intermediate Accounting IFRS Edition
ISBN: 9781118443965
2nd Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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