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Under contract, Sojourn Co. delivers 1,600 units to Customer A for $35 each on 1 April. Sojourn's documented policy is to allow a customer to
Under contract, Sojourn Co. delivers 1,600 units to Customer A for $35 each on 1 April. Sojourn's 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 $25. On the basis of historical experience, Sojourn estimates that 2% 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) What is the debit(s) for the cost of sale entry on April 1st? Choose... Inventory 40,000 Cost of Goods Sold 40,000 Cost of Goods Sold 56,000 Right to Recover Asset 1,120 Right to Recover Asset 40,000 Cost of Goods Sold 39,200 Right to Recover Asset 800 What is the credit(s) in the cost of sale entry on April 1st
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