Crane Publishing Co$.$ publishes college and university 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.

$($c$)$

On August $8,2023,$ Crane shipped books invoiced at $$38,000,000($cost $$30,400,000).$ 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. List all debit entries before credit

entries.$)$

Date

Account Titles and Explanation

Debit

Credit

August $8,2023$

$($To record sale on account$)$

August $8,2023$

$($To record cost of goods sold$)$