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Riverbed Ltd. offered to sell common shares on a subscription basis. Each subscription allowed for the purchase of 22 shares ata price of $48 per
Riverbed Ltd. offered to sell common shares on a subscription basis. Each subscription allowed for the purchase of 22 shares ata price of $48 per share. Terms of the subscription stated that subscribers were to pay 45% of the price as a down payment with the remainder due in six months. On June 1. 2020, 180 subscriptions were sold. Six months later, on December 1, only 90 of the subscriptions were fully paid for According to the subscription contract, the company would retain the downpayment on any defaulted subscriptions Prepare the December 1 journal entry, assuming instead that Riverbed refunded the down payment on the defaulted subscriptions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit Dec. 1 To record refund to defaulting subscribers)
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