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2 . James Company sells college textbooks to State University. Under the terms of the contract, State University may return whatever textbooks it does not
James Company sells college textbooks to State University. Under the terms of the contract, State University may return whatever textbooks it does not sell for a full refund no later than days from the date of delivery. Based on historic sales to State University and other college book stores, of the books delivered are returned for a full refund.
On September James delivers books to State University with a sales value of $ The books have a cost to James of $ State University immediately pays the amount owed upon delivery. The accountant must prepare the financial statement adjusting entries for the accounting period which ends September As of that date, no books have been returned by State University.
Required:
Please prepare the entry to reflect the sale of the books for James on September and the necessary adjusting entry for September
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