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 65 days after shipment. The retailer may return a maximum of 27% 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 75 days.
Collapse question part (c) In late July, Uddin shipped books invoiced at $12,600,000. Prepare the journal entry to record this event that best conforms to GAAP.