Calculate the normal return rate


Uddin 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 64 days after shipment. The retailer may return a maximum of 29% 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 11%, and the average collection period is 76 days.

In late July, Uddin shipped books invoiced at $15,500,000. Prepare the journal entry to record this event that best conforms to GAAP.

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Accounting Basics: Calculate the normal return rate
Reference No:- TGS0686706

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