Path: p QUESTION 27 Scholastic permits customers to return any tem for any reason within 60 days of sale. Scholastic estimates that 20% of "s sales un May 2017 will be returned in July 2017. According to GAAP, does Scholastics record the effect of these returned products on t income statement in 2017 or 2018? Briefly explain why Words QUESTION 2 Scholasthic Corp is a children's media company. It maintains over 5,000 titles (eg, Hunger Games, Captain Underpants) and has the esclusive U.S.nghts to the Harry Potter book series. The following information was included on Scholastic's 2017 financial statements. This is not a trial balance. It is a list of accounts as they appeared on the balance sheet and income statement as of and for the year ended May 31, 2017. All amounts represent al balances (o g accounts payable has a credit balance of $120). (Note: Retained earnings is ending retained earnings) $ 345 Long-term debt Loss from discontinued 5 120 340 Path: p QUESTION 27 Scholastic permits customers to return any tem for any reason within 60 days of sale. Scholastic estimates that 20% of "s sales un May 2017 will be returned in July 2017. According to GAAP, does Scholastics record the effect of these returned products on t income statement in 2017 or 2018? Briefly explain why Words QUESTION 2 Scholasthic Corp is a children's media company. It maintains over 5,000 titles (eg, Hunger Games, Captain Underpants) and has the esclusive U.S.nghts to the Harry Potter book series. The following information was included on Scholastic's 2017 financial statements. This is not a trial balance. It is a list of accounts as they appeared on the balance sheet and income statement as of and for the year ended May 31, 2017. All amounts represent al balances (o g accounts payable has a credit balance of $120). (Note: Retained earnings is ending retained earnings) $ 345 Long-term debt Loss from discontinued 5 120 340