Crane Publishing Co publishes college and university textbooks that are sold to bookstores on the following terms. Each title has a
fixed wholesale price, terms fob shipping point, and payment is due days after shipment. The retailer may return a maximum of
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 and the average collection period is days. The company follows IFRS.
c
On August Crane shipped books invoiced at $cost $ 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 for the amounts. List all debit entries before credit
entries.
Date
Account Titles and Explanation
Debit
Credit
August
To record sale on account
August
To record cost of goods sold
