Chapter 8, Problem 8.17E

Sales with the Right of Return. Webster Hall, Inc. is a major publisher of colege textbooks Webster Hal allows college bookstores to return all purchases within two months of delivery The company shipped $700,000 in textbooks in December 2019 based on orders for the spring 2020 semester Webster Hall estimates that 35% of the books will be returned All shipments were on account and unpaid at the time of returns

Required

1. a. Prepare the journal entry to record sales and estimated returns for 2019. Ignore cost of goods sold and inventory.
2. b. Assume that Webster Hall reports $189 000 in total sales returns in February 2020 Prepare the journal entry required to record the total sales returns.