Sandhill 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% and the average collection period is 72 days. The company follows IFRS.

On August 8, 2020, Sandhill shipped books invoiced at $35,000,000 (cost $28,000,000). Prepare the journal entry to record this transaction, including the expected returns

Date	Account Titles and Explanation	Debit	Credit
August 8, 2020
	(To record sale on account)
August 8, 2020
	(To record cost of goods sold)

On October 3, 2020, $1,600,000 million of the invoiced July sales were returned according to the return policy, and the remaining $33,400,000 million was paid. Prepare the journal entries for the return and payment.

Date	Account Titles and Explanation	Debit	Credit
October 3, 2020
	(To record return from customer)
October 3, 2020
	(To record return of inventory)
October 3, 2020
	(To record collection on account)

On August 8, 2020, Sandhill shipped books invoiced at $35,000,000 (cost $28,000,000). Prepare the journal entry to record this transaction, including the expected returns. Sandhill follows ASPE.

Date	Account Titles and Explanation	Debit	Credit
August 8, 2020
	(To record sale on account)
August 8, 2020
	(To accrue for sales returns)
August 8, 2020
	(To record cost of goods sold)

On October 3, 2020, $1,600,000 million of the invoiced July sales were returned according to the return policy, and the remaining $33,400,000 million was paid. Prepare the journal entries for the return and payment. Sandhill follows ASPE

Date	Account Titles and Explanation	Debit	Credit
October 3, 2020
	(To record return from customer)
October 3, 2020
	(To record return of inventory)
October 3, 2020
	(To record collection on account)