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Red Inc., a publicly listed company, distributes dishware sets to various Canadian retailers. Each set...

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Red Inc., a publicly listed company, distributes dishware sets to various Canadian retailers. Each set has a fixed wholesale price with payment due 30 days after shipment. A retailer may return a maximum of 25% 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 10% and the average collection period is 27 days. On February 10, 2020, Red shipped sets invoiced at $740,000 (cost $310,000). Instructions: (a) Prepare the journal entry to record the dishware sets shipped on February 10 2020. (b) On March 1, 2020, $37,000 of the invoiced February sales were returned according to the return policy. Additionally, the remaining sales ($703,000) were paid. Prepare the journal entries for the return and payment

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