Business, 14.04.2020 15:47 jukesjameson12
On July 10, 2020, Pronghorn Music sold CDs to retailers on account and recorded sales revenue of $635,000 (cost $508,000). Pronghorn 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 Pronghorn and were granted credit of $82,700.Prepare Pronghorn’s journal entries to record (a) the sale on July 10, 2020, and (b) $82,700 of returns on October 11, 2020, and on October 31, 2020. Assume that Pronghorn prepares financial statement on October 31, 2020. (
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On July 10, 2020, Pronghorn Music sold CDs to retailers on account and recorded sales revenue of $63...
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