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Crane Publishing Co. publishes college textbooks that are sold to bookstores on the following terms....

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Crane Publishing Co. publishes college textbooks that are sold to bookstores on the following terms. Each title has a fixed wholesale price, terms fo.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 October 3, 2020, $1,500,000 of the invoiced July sales were returned according to the return policy, and the remaining $13,500,000 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 for the amounts.) Credit Date Account Titles and Explanation Oct. 3, 2020 Sales Returns and Allowances Debit 1,800,000 Accounts Receivable 1,800,000 (To record the return) Returned Inventory 12000000 12000000 Cost of Goods Sold (To record cost of goods returned) Cash 13500000 Accounts Receivable 13500000 (To record the payment)

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