Chester Books Co. publishes romance novels that are sold to bookstores on the following terms. Each title has a fixed
(a) Identify alternative revenue recognition tests that Chester Books could employ concerning textbook sales.
(b) Briefly discuss the reasoning for your answers in (a) above.
(c) In late October, Chester shipped books invoiced at $6,500,000. Prepare the journal entry to record this event that best conforms to generally accepted accounting principles and your answer to part (b).
(d) In January, $725,000 of the invoiced October sales were returned according to the return policy and the remaining amounts were paid. Prepare the entry recording the return and payment.
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Question Posted: June 07, 2013 10:29:16