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Aamodt Music sold CDs to retailers and recorded sales revenue of $699,600. During 2014, retailers returned CDs to Aamodt and were granted credit of $80,100.
Aamodt Music sold CDs to retailers and recorded sales revenue of $699,600. During 2014, retailers returned CDs to Aamodt and were granted credit of $80,100. Past experience indicates that the normal return rate is 15%.
Prepare Aamodts entries to record (a) the $80,100 of returns and (b) estimated returns at December 31, 2014.
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