On July 1, 2020, Bridgeport shipped books invoiced at $15,100,000 (cost $12,080,000). Prepare the journal entry to record this transaction. (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.) Account Titles and Explanation Debit Credit             (To recognize revenue.)                 (To record cost of goods sold.) On October 3, 2020, $1,510,000 of the invoiced July sales were returned according to the return policy, and the remaining $13,590,000 was paid. Prepare the journal entries for the return and payment. (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.) Date Account Titles and Explanation Debit Credit Oct. 3, 2020                 (To record the return)                       (To record cost of goods returned)                       (To record the payment) Assume Bridgeport prepares financial statements on October 31, 2020, the close of the fiscal year. No other returns are anticipated. Indicate the amounts reported on the income statement and balance related to the above transactions. (If answer is 0, please enter 0. Do not leave any fields blank.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Bridgeport Publishing Co. publishes college textbooks that are sold to bookstores on the following terms. Each title has a fixed wholesale price, terms f.o.b. shipping point, and payment is due 60 days after shipment. The retailer may return a maximum of 30% of an order at the retailer’s expense. Sales are made only to retailers who have good credit ratings. Past experience indicates that the normal return rate is 12%. The costs of recovery are expected to be immaterial, and the textbooks are expected to be resold at a profit.

On July 1, 2020, Bridgeport shipped books invoiced at $15,100,000 (cost $12,080,000). Prepare the journal entry to record this transaction. (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.)

Account Titles and Explanation
Debit
Credit
 
 
 
 
 
 
(To recognize revenue.)
   
 
 
 
 
 
 
(To record cost of goods sold.)

On October 3, 2020, $1,510,000 of the invoiced July sales were returned according to the return policy, and the remaining $13,590,000 was paid. Prepare the journal entries for the return and payment. (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.)

Date
Account Titles and Explanation
Debit
Credit
Oct. 3, 2020
 
 
 
 
 
 
 
 
(To record the return)
   
 
 
 
 
 
 
 
 
 
(To record cost of goods returned)
   
 
 
 
 
 
 
 
 
 
(To record the payment)
Assume Bridgeport prepares financial statements on October 31, 2020, the close of the fiscal year. No other returns are anticipated. Indicate the amounts reported on the income statement and balance related to the above transactions. (If answer is 0, please enter 0. Do not leave any fields blank.)

Income Statement (partial)
                                                                       October 31, 2020For the Year Ended October 31, 2020
    $
                                                                       AddLess:    
                                                                       Dividends DeclaredExpensesGross profitNet Income / (Loss)Net Income to Retained EarningsNet SalesRetained Earnings 11/1Retained Earnings 10/31RevenuesTotal Cost & ExpensesTotal Revenues    
     
                                                                       Dividends DeclaredExpensesGross profitNet Income / (Loss)Net Income to Retained EarningsNet SalesRetained Earnings 11/1Retained Earnings 10/31RevenuesTotal Cost & ExpensesTotal Revenues   $

Balance Sheet (partial)
                                                                       October 31, 2020For the Year Ended October 31, 2020For the Quarter Ended October 31, 2020
    $
     
     
 
 
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Knowledge Booster
Inventory Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education