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Brief Exercise 18-13
On July 10, 2017, Sunland Music sold CDs to retailers on account and recorded sales revenue of $636,000 (cost $496,080). Sunland 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, 2017, retailers returned CDs to Sunland and were granted credit of $77,100.
Prepare Sunland's journal entries to record (a) the sale on July 10, 2017, and (b) $77,100 of returns on October 11, 2017, and on October 31, 2017. Assume that Sunland prepares financial statement on October 31, 2017
Using the story about Robin Hood, discuss a cost-benefit and cost-effective analysis of the proposed assessment and contingency plan. Justify your rationale.
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For this assignment, you should create an organizational chart to represent the ideal structure for your current organization (or one with which you are familiar). You should include:
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