Homework Help is Here – Start Your Trial Now!
Business
Accounting
Show Attempt History Current Attempt in Progress Your answer is partially correct. On July 10, 2025, Ivanhoe Music sold CDs to retailers on account and recorded sales revenue of $745,000 (cost $566,200). Ivanhoe 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, 2025, retailers returned CDs to Ivanhoe and were granted credit of $70,700. Prepare Ivanhoe's journal entries to record (a) the sale on July 10, 2025, and (b) $70,700 of returns on October 11, 2025, and on October 31, 2025. Assume that Ivanhoe prepares financial statements on October 31, 2025 and uses the gross method. (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. List all debit entries before credit entries.) Date 125 Account Titles and Explanation Accounts Receivable Sales Revenue (To record sales) Cost of Goods Sold Debit 745000 566200 Inventory (To record cost of goods sold) 70700 325 < Sales Returns and Allowances > 325 Accounts Receivable (To record sales returns) Estimated Inventory Returns 53732 Cost of Goods Sold (To record cost of goods returned) Cost of Goods Sold 31198 Estimated Inventory Returns eTextbook and Media List of Accounts Save for Later Credit 745000 566200 70700 53732 31198 Attempts 2 of 3 used Submit Anover Pollen tomorrow

Show Attempt History Current Attempt in Progress Your answer is partially correct. On July 10, 2025, Ivanhoe Music sold CDs to retailers on account and recorded sales revenue of $745,000 (cost $566,200). Ivanhoe 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, 2025, retailers returned CDs to Ivanhoe and were granted credit of $70,700. Prepare Ivanhoe's journal entries to record (a) the sale on July 10, 2025, and (b) $70,700 of returns on October 11, 2025, and on October 31, 2025. Assume that Ivanhoe prepares financial statements on October 31, 2025 and uses the gross method. (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. List all debit entries before credit entries.) Date 125 Account Titles and Explanation Accounts Receivable Sales Revenue (To record sales) Cost of Goods Sold Debit 745000 566200 Inventory (To record cost of goods sold) 70700 325 < Sales Returns and Allowances > 325 Accounts Receivable (To record sales returns) Estimated Inventory Returns 53732 Cost of Goods Sold (To record cost of goods returned) Cost of Goods Sold 31198 Estimated Inventory Returns eTextbook and Media List of Accounts Save for Later Credit 745000 566200 70700 53732 31198 Attempts 2 of 3 used Submit Anover Pollen tomorrow

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 47BE: Percentage of Credit Sales Method Ruby Red manufactures, markets, and distributes citrus flavored...
See similar textbooks
icon
Related questions
Question
Show Attempt History Current Attempt in Progress Your answer is partially correct. On July 10, 2025, Ivanhoe Music sold CDs to retailers on account and recorded sales revenue of $745,000 (cost $566,200). Ivanhoe 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, 2025, retailers returned CDs to Ivanhoe and were granted credit of $70,700. Prepare Ivanhoe's journal entries to record (a) the sale on July 10, 2025, and (b) $70,700 of returns on October 11, 2025, and on October 31, 2025. Assume that Ivanhoe prepares financial statements on October 31, 2025 and uses the gross method. (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. List all debit entries before credit entries.) Date 125 Account Titles and Explanation Accounts Receivable Sales Revenue (To record sales) Cost of Goods Sold Debit 745000 566200 Inventory (To record cost of goods sold) 70700 325 < Sales Returns and Allowances > 325 Accounts Receivable (To record sales returns) Estimated Inventory Returns 53732 Cost of Goods Sold (To record cost of goods returned) Cost of Goods Sold 31198 Estimated Inventory Returns eTextbook and Media List of Accounts Save for Later Credit 745000 566200 70700 53732 31198 Attempts 2 of 3 used Submit Anover Pollen tomorrow
Transcribed Image Text:Show Attempt History Current Attempt in Progress Your answer is partially correct. On July 10, 2025, Ivanhoe Music sold CDs to retailers on account and recorded sales revenue of $745,000 (cost $566,200). Ivanhoe 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, 2025, retailers returned CDs to Ivanhoe and were granted credit of $70,700. Prepare Ivanhoe's journal entries to record (a) the sale on July 10, 2025, and (b) $70,700 of returns on October 11, 2025, and on October 31, 2025. Assume that Ivanhoe prepares financial statements on October 31, 2025 and uses the gross method. (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. List all debit entries before credit entries.) Date 125 Account Titles and Explanation Accounts Receivable Sales Revenue (To record sales) Cost of Goods Sold Debit 745000 566200 Inventory (To record cost of goods sold) 70700 325 < Sales Returns and Allowances > 325 Accounts Receivable (To record sales returns) Estimated Inventory Returns 53732 Cost of Goods Sold (To record cost of goods returned) Cost of Goods Sold 31198 Estimated Inventory Returns eTextbook and Media List of Accounts Save for Later Credit 745000 566200 70700 53732 31198 Attempts 2 of 3 used Submit Anover Pollen tomorrow
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS