Questur 1 Incomplete answer Not graded Flag question Revenue Recognition and Sales Allowances Target Corporation reported the following on its income statement. For 12 Months Ended ($ millions) Feb. 2, 2019 Feb. 3, 2018 Jan. 28, 2017 Total revenue Cost of sales $68,574 48,502 SGG,170 46,524 $63,947 44,722 The revenue recognition footnote from the 10-K for the year ended February 2, 2019, includes the following. We record almost all retail store revenues at the point of sale. Digital channel sales include shipping revenue and are recorded upon delivery to the guest or upon guest pickup at the store. Total revenues do not include sales tax because we are a pass-through conduit for collecting and remitting sales taxes. Generally, guests may return national brand merchandise within 90 days of purchase and owned and exclusive brands within one year of purchase. Revenues are recognized net of expected returns, which we estimate using historical return patterns as a percentage of sales and our expectations of future returns. Revenue from gift card sales is recognized upon gift card redemption. Our gift cards do not expire. Based on historical redemption rates, a small and relatively stable percentage of gift cards will never be redeemed, referred to as "breakage." Estimated breakage revenue is recognized over time in proportion to actual gift card redemptions. Guests receive a 5 percent discount on virtually all purchases and receive free shipping at Target.com when they use their REDcard. This discount is included as a sales reduction in our Consolidated Statements of Operations and was $867 million, $849 million, and $818 million in the fiscal years ended February 2019, 2018, and 2017 respectively. Required a. Use the financial statement effects template to record retail cash sales of $910 in a state with a sales tax rate of 8%. For this question, assume 10% of all merchandise sold is returned within 90 days. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. ($ millions) Transaction In-store sales Cash Noncash Assets -910 Cash Asset 982.8 Inventory Balance Sheet Liabilities Allowances for Sales Returns Sales Tax Payable 91 N/A 72.8 Contrib. Capital Earned Capital 0 191) Retained Earnings Revenue Income Statement Revenues 819- COGS Expenses - Net Income 910- =