Big 5 Sporting Goods, a sporting goods retailer headquartered in El Segundo, California with 434 stores in Arizona, California, Colorado, Idaho, Nevada, New Mexico, and Wyoming. Big 5 Sporting Goods allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Big 5 Sporting Goods's sales are for credit (no cash is collected at the time of sale). Big 5 Sporting Goods began the current year with a refund liability of $380,000. During the current year, Big 5 Sporting Goods sold merchandise on account for $12,300,000. Big 5 Sporting Goods' merchandise costs are 70% of merchandise selling price. Also during the year, customers returned $603,000 in sales for credit, with $333,000 of those being returns of merchandise sold prior to the current year, and the rest being merchandise sold during the current year. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year

Big 5 Sporting Goods, a sporting goods retailer headquartered in El Segundo, California with 434 stores in Arizona, California, Colorado, Idaho, Nevada, New Mexico, and Wyoming. Big 5 Sporting Goods allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Big 5 Sporting Goods's sales are for credit (no cash is collected at the time of sale). Big 5 Sporting Goods began the current year with a refund liability of $380,000. During the current year, Big 5 Sporting Goods sold merchandise on account for $12,300,000. Big 5 Sporting Goods' merchandise costs are 70% of merchandise selling price. Also during the year, customers returned $603,000 in sales for credit, with $333,000 of those being returns of merchandise sold prior to the current year, and the rest being merchandise sold during the current year. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter9: Receivables

Section: Chapter Questions

Problem 27E

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Analyze: What were the total cash receipts during March? can you help me how to do it, please?