Novak 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%. The costs of recovery are expected to be immaterial, and the textbooks are expected to be resold at a profit. (c) Correct answer iconYour answer is correct. On July 1, 2020, Novak shipped books invoiced at $16,300,000 (cost $13,040,000). Prepare the journal entry to record this transaction. (Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit Credit Accounts Receivable 16,300,000 Sales Revenue 16,300,000 (To recognize revenue.) Cost of Goods Sold 13,040,000 Inventory 13,040,000 (To record cost of goods sold.) eTextbook and Media List of Accounts Attempts: 1 of 3 used (d) Partially correct answer iconYour answer is partially correct. On October 3, 2020, $1,630,000 of the invoiced July sales were returned according to the return policy, and the remaining $14,670,000 was paid. Prepare the journal entries for the return and payment. (Credit account titles are automatically indented when 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.) Date Account Titles and Explanation Debit Credit Oct. 3, 2020 Sales Returns and Allowances 1,630,000 Accounts Receivable 1,630,000 (To record the return) Inventory 326000 Cost of Goods Sold 326000 (To record cost of goods returned) Cash Accounts Receivable