Finance Accounting 14e

eBook Exercise 8-18 Revenue Recognition at Time of Sale Marks and Spencer Group, Plc., a U.K. retailer, applies IFRS and reports its results in millions of pounds sterling (E). The notes to its financial statements provide the following information: Revenue comprises sales of goods to customers less an appropriate deduction for returns and discounts. Marks and Spencer records revenues for sales of furniture and items purchased online uporn delivery to the customer Marks and Spencer records trade receivables at their nominal amount less an allowance for any doubtful accounts and sales returns. The beginning balance in the allowance for uncollectible accounts and sales returns was 1.1 million, and the ending balance was E3.3 million. There were no recoveries of uncollectible accounts during the yea Assume that for the year ended March 29, 2013, Marks and Spencer reported revenues (before discounts and returns) of E9,022.0 million. The cost of merchandise sold in 2013 was 5,535.2 million. me hat Marks and Spencer estimates discounts and returns of 1% of sales. Further assume that it made all sales on credit and that it estimates that .5% o ever es ll e unco lectii Hide a. What journal entry did Marks and Spencer record during the year ended March 29, 2013, to recognize revenues and expenses? If an amount box does not require an entry, leave it blank. Enter all amounts in millions, to one decimal place. Accounts Receivable, Gross - 9022.0 9022.0 Cost of Goods Sold 535.2 535.2 03 les Revenue 90.22 9022.0 Merchandise Inventory 535.2 5535.2