Response to the following :
Sales Returns and Allowances
Refer to the data in problem. Assume a customer found that 20 of the books were misprinted and returned the 20 books for a refund.
Prepare the journal entry necessary in the records of the selling company to record the receipt of the returned books assuming that (1) the books were returned by a cash customer and (2) the books were returned by a credit customer.
Problem:
Revenue Recognition
Make the journal entry necessary to record the sale of 120 books at $32 per book. Sixty-five of the books were sold for cash, and 55 were sold on credit.