Sheridan 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 retailer's 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, Sheridan shipped books invoiced at $32,000,000 (cost $26,000,000). Prepare the journal entry to record this transaction, including the expected returns. (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 Ofor the amounts.) Account Titles and Explanation Debit Credit Date August 8, 2020 (To record sale on account) August 8, 2020 LIJS On October 3, 2020, $1,600,000 million of the invoiced July sales were returned according to the return policy, and the remaining $30,400,000 million was paid. Prepare the journal entries for the return and payment. (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 Ofor the amounts. Round answers to 0 decimal palces, e.g. 5,275.) 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, Sheridan shipped books invoiced at $32,000,000 (cost $26,000,000). Prepare the journal entry to record this transaction, including the expected returns. Sheridan follows ASPE. (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.) Account Titles and Explanation Debit Credit Date 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 $30,400,000 million was paid. Prepare the journal entries for the return and payment. Sheridan follows ASPE. (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 October 3, 2020 (To record return from customer) October 3, 2020 (To record return of inventory) October 3, 2020 (To record collection on account)
