Question
Brief Exercise 18-13 On July 10, 2017, Sunland Music sold CDs to retailers on account and recorded sales revenue of $636,000 (cost $496,080). Sunland grants
Brief Exercise 18-13
On July 10, 2017, Sunland Music sold CDs to retailers on account and recorded sales revenue of $636,000 (cost $496,080). Sunland 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, 2017, retailers returned CDs to Sunland and were granted credit of $77,100.
Prepare Sunlands journal entries to record (a) the sale on July 10, 2017, and (b) $77,100 of returns on October 11, 2017, and on October 31, 2017. Assume that Sunland prepares financial statement on October 31, 2017
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
