mann stores returned goods that had been billed orifinally at 800

263 Chapter 5 Accounting for Merchandising Operations $410,000 of sales on account still eligible for the percent discount at year-end and believes that all companies will pay within the discount period. Additionally Butler allows a 90-day return privice for the merchandiselt sells. At year-end, Butler estimates sales of $1.200.000 (with a cost to utro $480,000) remain that are still within the 90-day return neried. From past experience, 6 percent of this merchandise is expected to be returned. Prepare the neriod end adiusting journal entries needed for Butler Corporation to comply with the new revenue recognition standard. Butler Corporation's fiscal year-end is December 31. BLEMS-SET A x Journal Entries for Merchandise Transactions on Seller's and Buyer's Books Perpetual System L02, 3 The following transactions occurred between the Decker Company and Mann Stores, Inc., during March: Mar. 8 Decker sold $14,000 worth of merchandise ($9,600 cost) to Mann Stores with terms of 2/10, n/30. 10 Mann Stores paid freight charges on the shipment from Decker Company, $500. 12 Mann Stores returned $2,000 of the merchandise ($1,600 cost) shipped on March 8. 17 Decker received full payment for the net amount due from the March 8 sale. 20 Mann Stores returned goods that had been billed originally at $800 ($600 cost). Decker issued a check for $784. quired are the necessary iournal entries for all the hooks of Decker Camnany and (h) the heaks of Mann