Blossom Publishing Co. publishes college textbooks that are sold to bookstores on the following terms. Each title has a fixed wholesale price, terms fo.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, Blossom shipped books invoiced at $37.000.000 (cost $30,000,000). 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 for the amounts.) Date Account Titles and Explanation Debit Credit August 8, 2020 (To record sale on account) August 8. 2020 (To record cost of goods sold) On October 3, 2020, $1,300,000 million of the invoiced July sales were returned according to the return policy, and the remaining $35,700,000 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 for the amounts. Round answers to decimal palces, eg. 5,275.) o Date Account Titles and Explanation Debit Credit October 3,2020 (To record return from customer) October 3, 2020 (To record retum of inventory) October On August 8, 2020, Blossom shipped books invoiced at $37,000,000 (cost $30,000,000). Prepare the journal entry to record this transaction, including the expected returns. Blossom 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 for the amounts.) Date Account Titles and Explanation Debit Credit August 8, 2020 (To record sale on account) August 8 2020 (To accrue for sales returns) August 8 2020 On October 3, 2020, $1,300,000 million of the invoiced July sales were returned according to the return policy, and the remaining $35,700,000 million was paid. Prepare the journal entries for the return and payment. Blossom 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 O for the amounts.) Date Account Titles and Explanation Debit Credit October 3,2020 (To record return from customer) October 3, 2020 (To record retum of Inventory) October 3.2020
