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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
July 10, 2023
July 10, 2023
July 10, 2023
Account Titles and Explanation
(To record sale on account)
(To accrue for sales returns)
(To record cost of goods sold)
Debit
||
Credit
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