Cullumber Publishers sells textbooks to universities across Canada. On July 10, 2021, Cullumber entered into a contract with Hinton University to supply 990 accounting textbooks at a price of $110 per book to be paid on September 25, 2021. The books cost Cullumber $77 each. Cullumber's return policy states that any unsold books can be returned within 90 days of delivery. The books were delivered on August 25, 2021. Cullumber estimates returns at 10% of sales. Hinton returns 33 books on September 15, 2021, and 66 books on September 30, 2021.
Cullumber Publishers sells textbooks to universities across Canada. On July 10, 2021, Cullumber entered into a contract with Hinton University to supply 990 accounting textbooks at a price of $110 per book to be paid on September 25, 2021. The books cost Cullumber $77 each. Cullumber's return policy states that any unsold books can be returned within 90 days of delivery. The books were delivered on August 25, 2021. Cullumber estimates returns at 10% of sales. Hinton returns 33 books on September 15, 2021, and 66 books on September 30, 2021.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 6MC
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![Cullumber Publishers sells textbooks to universities across Canada. On July 10, 2021, Cullumber
entered into a contract with Hinton University to supply 990 accounting textbooks at a price of
$110 per book to be paid on September 25, 2021. The books cost Cullumber $77 each. Cullumber's
return policy states that any unsold books can be returned within 90 days of delivery. The books
were delivered on August 25, 2021. Cullumber estimates returns at 10% of sales. Hinton returns 33
books on September 15, 2021, and 66 books on September 30, 2021.
× Your answer is incorrect.
Determine the transaction price.
Transaction price
$
108,900](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F619c10c1-a4a7-4621-92b9-c54d39bcb8fd%2F9bbd4ee6-d43f-4bdd-8762-d93da9bcb21c%2Fxvxt1ef_processed.png&w=3840&q=75)
Transcribed Image Text:Cullumber Publishers sells textbooks to universities across Canada. On July 10, 2021, Cullumber
entered into a contract with Hinton University to supply 990 accounting textbooks at a price of
$110 per book to be paid on September 25, 2021. The books cost Cullumber $77 each. Cullumber's
return policy states that any unsold books can be returned within 90 days of delivery. The books
were delivered on August 25, 2021. Cullumber estimates returns at 10% of sales. Hinton returns 33
books on September 15, 2021, and 66 books on September 30, 2021.
× Your answer is incorrect.
Determine the transaction price.
Transaction price
$
108,900
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