Bb.16. Prepare Sunland's journal entries to record the $72,000 of actual returns on October 10, 2023. (Hint: Use Accounts Payable forthe amount returned.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry isrequired, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)DateOctober 10, 2023October 10, 2023October 10, 2023October 10, 2023Account Titles and Explanation(To record return from customer)(To record return of inventory)(To adjust allowance for sales return and allowancesfor the end of right of return)(To adjust cost of goods sold for end of right of return)DebitCredit On July 10, 2023, Sunland Ltd. sold GPS systems to retailers on account for a selling price of $740,000 (cost $592,000). Sunland grantsthe right to return systems that do not sell in three months following delivery. Past experience indicates that the normal return rate is15%. 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)Your answer is correct.Prepare Sunland's journal entries to record the sale on July 10, 2023. (Credit account titles are automatically indented when theamount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Listall debit entries before credit entries.)DateJuly 10, 2023July 10, 2023July 10, 2023Account Titles and ExplanationAccounts ReceivableSales Revenue(To record sale on account)Sales Returns and AllowancesAllowance for Sales Returns and Allowances(To accrue for sales returns)Cost of Goods SoldEstimated Inventory ReturnsInventory(To record cost of goods sold)Debit74000011100050320088800Credit740000111000592000

The journal entry are used in order to consider the appropriate accounts and balances as the affect…

Prepare Sunland's journal entries to record the $72,000 of actual returns on October 10, 2023. (Hint: Use Accounts Payable for the amount returned.) (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 October 10, 2023 October 10, 2023 October 10, 2023 October 10, 2023 Account Titles and Explanation (To record return from customer) (To record return of inventory) (To adjust allowance for sales return and allowances for the end of right of return) Debit Credit

Prepare Sunland's journal entries to record the $72,000 of actual returns on October 10, 2023. (Hint: Use Accounts Payable for the amount returned.) (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 October 10, 2023 October 10, 2023 October 10, 2023 October 10, 2023 Account Titles and Explanation (To record return from customer) (To record return of inventory) (To adjust allowance for sales return and allowances for the end of right of return) 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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