On July 10, 2025, Cullumber Music sold CDs to retailers on account and recorded sales revenue of $644,000 (cost $502,320).Cullumber grants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normalreturn rate is 15%. By October 11, 2025, retailers returned CDs to Cullumber and were granted credit of $78,600.Prepare Cullumber's journal entries to record (a) the sale on July 10, 2025, and (b) $78,600 of returns on October 11, 2025, and onOctober 31, 2025. Assume that Cullumber prepares financial statements on October 31, 2025 and uses the gross method. (Creditaccount titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for theaccount titles and enter O for the amounts. List all debit entries before credit entries.)No.(a)DateJuly 10, 2025(b)Oct. 11, 2025Oct. 31, 2025Account Titles and Explanation(To record sales)(To record cost of goods sold)(To record sales returns)(To record cost of goods returned)DebitCredi

Working Note:Cost of goods returnFormula:Cost of returns=Sales returns×Cost of good sold…

Answered: On July 10, 2025, Cullumber Music sold…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On July 10, 2020, Pharoah Music sold CDs to retailers on account and recorded sales revenue of $665,000 (cost $478,800). Pharoah grants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2020, retailers returned CDs to Pharoah and were granted credit of $79,300.Prepare Pharoah’s journal entries to record (a) the sale on July 10, 2020, and (b) $79,300 of returns on October 11, 2020, and on October 31, 2020. Assume that Pharoah prepares financial statement on October 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
On July 10, 2020, Sarasota Music sold CDs to retailers on account and recorded sales revenue of $752,000 (cost $609,120). Sarasota grants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2020, retailers returned CDs to Sarasota and were granted credit of $73,700.Prepare Sarasota’s journal entries to record (a) the sale on July 10, 2020, and (b) $73,700 of returns on October 11, 2020, and on October 31, 2020. Assume that Sarasota prepares financial statement on October 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit (a) enter an account title to record sales on July 10, 2017 enter a debit amount…
On July 10, 2020, Flounder Music sold CDs to retailers on account and recorded sales revenue of $656,000 (cost $485,440). Flounder grants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2020, retailers returned CDs to Flounder and were granted credit of $70,700.Prepare Flounder’s journal entries to record (a) the sale on July 10, 2020, and (b) $70,700 of returns on October 11, 2020, and on October 31, 2020. Assume that Flounder prepares financial statement on October 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit (a) Jul. 10, 2020Oct. 11, 2020Oct. 31, 2020 enter an account title to record sales on…
On July 10, 2020, Amodt Music sold CDs to retailers on account and recorded sales revenue of $700,000 (cost $560,000). Amodt grants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2020, retailers returned CDs to Amodt and were granted credit of $78,000. Prepare Amodt's journal entries to record (a) the sale on July 10, 2020, and (b) $78,000 of returns on October 11, 2020, and on October 31, 2020. Assume that Amodt prepares financial statement on October 31, 2020.
On July 10, 2020, Cheyenne Music sold CDs to retailers on account and recorded sales revenue of $658,000 (cost $506, 660). Cheyenne grants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2020, retailers returned CDs to Cheyenne and were granted credit of $80,000. Prepare Cheyenne's journal entries to record (a) the sale on July 10, 2020, and (b) $80,000 of returns on October 11, 2020, and on October 31, 2020. Assume that Cheyenne prepares financial statement on October 31, 2020. (To record sales) (To record cost of goods) (To record sales returns) (To record cost of goods returned)
On July 10, 2020, Buffalo Music sold CDs to retailers on account and recorded sales revenue of $740,000 (cost $621,600). Buffalo grants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2020, retailers returned CDs to Buffalo and were granted credit of $85,500.Prepare Buffalo’s journal entries to record (a) the sale on July 10, 2020, and (b) $85,500 of returns on October 11, 2020, and on October 31, 2020. Assume that Buffalo prepares financial statement on October 31, 2020.
On 10 July 2021, Pop Music sold CDs to retailers on account and recorded sales revenue of $700,000 (cost $560,000). Pop grants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normal return rate is 15%. By 11 October 2021, retailers returned CDs to Pop and were granted credit of $78,000. Required: Prepare Pop’s journal entries to record (a) the sale on 10 July 2021, and (b) $78,000 of returns on 11 October 2021.
On July 10, 2020, Bridgeport Music sold CDs to retailers on account and recorded sales revenue of $764.000 (cost $588,280) Bridgeport grants the right to return CDs that do not sell in 3 months following delivery, Past experience indicates that the normal return rate is 15%. By October 11, 2020, retailers returned CDs to Bridgeport and were granted credit of $78,200. Prepare Bridgeport's journal entries to record (a) the sale on July 10, 2020, and (b) $78,200 of returns on October 11, 2020, and on October 31, 2020. Assume that Bridgeport prepares financial statement on October 31, 2020. (Credit account titles are automatically indented when 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.) Account Titles and Explanation No. € (b) Date (To record sales) (To record cost of goods sold) (To record sales) (To record cost of goods sold) (To record sales returns) (To record cost of goods returned) Debit…
On July 10, 2023, Cullumber Ltd. sold GPS systems to retailers on account for a selling price of $1,080,000 (cost $864,000). Cullumber 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 Cullumber and were granted credits of $89,000. The company follows IFRS. Prepare Cullumber's journal entries to record the $89,000 of actual returns on October 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 0 for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit ber 10, 2023 Refund Liability Accounts Payable (To record returns from customers) ber 10, 2023 Estimated Inventory Returns (To record return of inventory) ber 10,…
as show in the pic
On July 10, 2020, Bonita Ltd. sold GPS systems to retailers on account for a selling price of $1,020,000 (cost $816,000). Bonita 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, 2020, retailers returned systems to Bonita and were granted credits of $86,000. The company follows IFRS.
On July 10, 2020, Bonita Ltd. sold GPS systems to retailers on account for a selling price of $1,020,000 (cost $816,000). Bonita 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, 2020, retailers returned systems to Bonita and were granted credits of $86,000. The company follows IFRS.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS