Ivanhoe Publishers sells textbooks to universities across Canada. On July 10, 2021, Ivanhoe entered into a contract with Hinton University to supply 660 accounting textbooks at a price of $108 per book to be paid on September 25, 2021. The books cost Ivanhoe $75 each. Ivanhoe's return policy states that any unsold books can be returned within 90 days of delivery. The books were delivered on August 25, 2021. Ivanhoe estimates returns at 10% of sales. Hinton returns 22 books on September 15, 2021, and 44 books on September 30, 2021. Determine the transaction price. Transaction price $ On what date should revenue be recognized? Revenue should be recognized on
Ivanhoe Publishers sells textbooks to universities across Canada. On July 10, 2021, Ivanhoe entered into a contract with Hinton University to supply 660 accounting textbooks at a price of $108 per book to be paid on September 25, 2021. The books cost Ivanhoe $75 each. Ivanhoe's return policy states that any unsold books can be returned within 90 days of delivery. The books were delivered on August 25, 2021. Ivanhoe estimates returns at 10% of sales. Hinton returns 22 books on September 15, 2021, and 44 books on September 30, 2021. Determine the transaction price. Transaction price $ On what date should revenue be recognized? Revenue should be recognized on
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ivanhoe Publishers sells textbooks to universities across Canada. On July 10, 2021, Ivanhoe entered into a contract with Hinton
University to supply 660 accounting textbooks at a price of $108 per book to be paid on September 25, 2021. The books cost
Ivanhoe $75 each. Ivanhoe's return policy states that any unsold books can be returned within 90 days of delivery. The books were
delivered on August 25, 2021. Ivanhoe estimates returns at 10% of sales. Hinton returns 22 books on September 15, 2021, and 44
books on September 30, 2021.
Determine the transaction price.
Transaction price $
On what date should revenue be recognized?
Revenue should be recognized on
Transcribed Image Text:Date
August 25, 2021
August 25, 2021
September 15, 2021
September 15, 2021
September 25, 2021
September 30, 2021
v
September 30, 2021
Account Titles and Explanation
Show Transcribed Text
Accounts Receivable
Sales
(To record sales on account.)
(To record cost of goods sold.)
(To record credit for goods returned.)
J
(To record credit for goods returned.)
(To record credit for goods returned.)
(Collection on account.)
(To record cash refund for goods returned.)
(To record cost of goods returned.)
Debit
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