Question
Under contract, Sojourn Co. delivers 1,300 units to Customer A for $25 each on 1 April. Sojourns documented policy is to allow a customer to
Under contract, Sojourn Co. delivers 1,300 units to Customer A for $25 each on 1 April. Sojourns documented policy is to allow a customer to return any unused product within 90 days and receive a full refund. The cost of each product is $18. On the basis of historical experience, Sojourn estimates that 4% of the units will be returned. Sojourn expects that the returned products can be resold. Required: Record the journal entries to be made by Sojourn on 1 April to recognize the sale.
| General Journal | |||
| Date | Account Titles and Explanation | Debit | Credit |
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Introduction To Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
2nd Canadian Edition
0070964777, 9780070964778
