Accounts Payable Accounts Receivable Advertising Expense Allowance for Doubtful Accounts Allowance for Sales Returns and Allowances Cash Commission Expense Commission Revenue Compensation Expense Consignment Sales Construction Expenses Contract Asset/Liability Cost of Goods Sold Estimated Inventory Returns Interest Expense Interest Income Interest Payable Interest Receivable Inventory Inventory on Consignment Loss from Long-Term Contracts Materials, Cash, Payables Miscellaneous Expense No Entry Notes Receivable Office Expense Refund Liability Rent Revenue Returned Inventory Revenue from Consignment Sales Revenue from Long-Term Contracts Sales Discounts Sales Discounts Forfeited Sales Returns and Allowances Sales Revenue Service Revenue Unearned Rent Revenue Unearned Revenue Utilities Expense Warranty Expense Warranty Liability Warranty Revenue Exercise 6-11 c-e2 Wildhorse Publishing Co. publishes college textbooks that are sold to bookstores on the following terms. Each title has a fixed wholesale price, terms f.o.b. shipping point, and payment is due 60 days after shipment. The retailer may return a maximum of 30% of an order at the retailer's expense. Sales are made only to retailers who have good credit ratings. Past experience indicates that the normal return rate is 12% and the average collection period is 72 days. The company follows IFRS. On August 8, 2020, Wildhorse shipped books invoiced at $25,000,000 (cost $20,000,000). Prepare the journal entry to record this transaction, including the expected returns. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date August 8, 2020 August 8, 2020 Account Titles and Explanation (To record sale on account) Date October 3, 2020 (To record cost of goods sold) On October 3, 2020, $1,700,000 million of the invoiced July sales were returned according to the return policy, and the remaining $23,300,000 million was paid. Prepare the journal entries for the return and payment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal palces, e.g. 5,275.) Account Titles and Explanation October 3, 2020 October 3, 2020 (To record return from customer) (To record return of inventory) Debit (To record collection on account) Credit Debit Credit 100 On August 8, 2020, Wildhorse shipped books invoiced at $25,000,000 (cost $20,000,000). Prepare the journal entry to record his transaction, including the expected returns. Wildhorse follows ASPE. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Date August 8, 2020 August 8, 2020 August 8, 2020 Date October 3, 2020 October 3, 2020 (To record sale on account) October 3, 2020 (To accrue for sales returns) (To record cost of goods sold) n October 3, 2020, $1,700,000 million of the invoiced July sales were returned according to the return policy, and the emaining $23,300,000 million was paid. Prepare the journal entries for the return and payment. Wildhorse follows ASPE. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is equired, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit (To record return from customer) (To record return of inventory) Debit (To record collection on account) Credit Credit