Carnegie Corp. commissions, produces, and sells books through faith-based nonprofit organizations. The books are sold...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Carnegie Corp. commissions, produces, and sells books through faith-based nonprofit organizations. The books are sold on the basis that a maximum of 50% of the quantity purchased can be returned within six months. The contract with the customer outlines the amount of consideration and the return policy and that payment is due within 30 days of the end of the return period. Carnegie has a good historical record of the proportion of books returned, on average. On 1 June, Carnegie sold $25,000 worth of books. On 15 August, $4,000 were returned, and on 3 October, an additional $5,500 were returned. The payment for the balance owing was received on 20 December. The cost of the books is 65% of the selling price. All of the returns are put back into inventory and can be resold.
Required: Prepare the appropriate journal entries that are required for the described transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
