Calculate the revenue to be recognized

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Our book distribution division sells to national bookstores. Our division allows for up to 25% of sales in returns. For the past 4 years, returns have averaged 20%. We record revenue based on revenue recognition when the right of return exists.

Total Sales for 2012 $ 9,000,000
Sales Still Available for return for six months $ 2,000,000
Actual Returns on Sales not returnable 21%
2011 Sales collected in 2012 $ 2,500,000
2011 Sales returned in 2012 19%

Calculate the revenue to be recognized in fiscal year 2012 for each division of Peace book in accordance with generally accepted accounting principles. Show all calculations for full credit."

Reference no: EM13133115

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