On July 10, 2023, Sunland Ltd. sold GPS systems to retailers on account for a selling price of $740,000 (cost $592,000). Sunland grants the right to return systems that do not sell in three months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2023, following the collection on account, retailers returned systems to Sunland and were granted credits of $72,000. The company follows ASPE. (a) Prepare Sunland's journal entries to record the sale on July 10, 2023. (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 O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation July 10, 2023 July 10, 2023 July 10, 2023 (To record sale on account) (To accrue for sales returns) (To record cost of goods sold) Debit |||| Credit

On July 10, 2023, Sunland Ltd. sold GPS systems to retailers on account for a selling price of $740,000 (cost $592,000). Sunland grants the right to return systems that do not sell in three months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2023, following the collection on account, retailers returned systems to Sunland and were granted credits of $72,000. The company follows ASPE. (a) Prepare Sunland's journal entries to record the sale on July 10, 2023. (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 O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation July 10, 2023 July 10, 2023 July 10, 2023 (To record sale on account) (To accrue for sales returns) (To record cost of goods sold) Debit |||| Credit

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 7MCQ

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