Reference no: EM132583947
At the beginning of the current soccer season, on May 1, 2021, Fullback Sports has 100 soccer balls in inventory at $10 each. The company uses a perpetual inventory system and the contract-based approach for revenue recognition. Based on past experience, Fullback's management estimates returns at 20% of sales and has a stated return policy of 15 days from the date of sale.
The following sales transactions occurred in May:
May 5 Sold 15 soccer balls to Wolverine Soccer Club for $20 each, n/30.
7 Wolverine Soccer Club returned 3 of the balls after determining it had purchased more balls than it needed. Fullback gave Wolverine a credit on its account and returned the balls to inventory.
10 Sold 20 balls at $20 each to cash customers.
12 4 of the balls purchased for cash on May 10 were returned for cash because they were damaged. The balls were scrapped.
17 Sold 24 balls to Spectre Community Club for $20 each, n/30.
31 Collected cash from Wolverine Soccer Club for the amount owing.
Question 1: Record the transactions for the month of May for Fullback Sports. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)