Under contract, Sojourn Co. delivers 3,900 units to Customer A for $100 each on 1 April....
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Under contract, Sojourn Co. delivers 3,900 units to Customer A for $100 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 $70. On the basis of historical experience, Sojourn estimates that 3% 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.) Under contract, Sojourn Co. delivers 3,900 units to Customer A for $100 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 $70. On the basis of historical experience, Sojourn estimates that 3% 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.)
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1 Account Titles Debit Credit Accounts Receivable 3900x100 39000... View the full answer
Related Book For
Intermediate Accounting Volume 1
ISBN: 9781260306743
7th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod Dick
Posted Date:
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