Uddin 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 56 days after shipment. The retailer may return a maximum of 35% 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 79 days.

n late July, Uddin shipped books invoiced at $14,200,000. Prepare the journal entry to record this event that best conforms to GAAP.

In October, $2,390,000 of the invoiced July sales were returned according to the return policy, and the remaining $11,810,000 was paid. Prepare the entries for the return and payment