Cullumber 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 retailers 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, 2020, Cullumber shipped books invoiced at $17,000,000 (cost $14,000,000). Prepare the journal entry to record this transaction, including the expected returns.