On July 10, 2023, Cullumber Ltd. sold GPS systems to retailers on account for a selling price of $1,080,000 (cost $864,000). Cullumber grants the right to return systems that do not sell in three months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2023, following the collection on account, retailers returned systems to Cullumber and were granted credits of $89,000. The company follows IFRS. Prepare Cullumber's journal entries to record the $89,000 of actual returns on October 10, 2023. (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 O for the amounts. List all debit entries before credit entries.) Date ber 10, 2023 Account Titles and Explanation Refund Liability Debit 89000 Credit Accounts Payable (To record returns from customers) ber 10, 2023 Returned Inventory Estimated Inventory Returns (To record return of inventory) ber 10, 2023 Refund Liability Sales Revenue (To adjust refund liability for end of right of return) ber 10, 2023 Cost of Goods Sold Estimated Inventory Returns (To adjust cost of goods sold for end of right of return) 89000 On July 10, 2023, Cullumber Ltd. sold GPS systems to retailers on account for a selling price of $1,080,000 (cost $864,000). Cullumber grants the right to return systems that do not sell in three months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2023, following the collection on account, retailers returned systems to Cullumber and were granted credits of $89,000. The company follows IFRS. Prepare Cullumber's journal entries to record the $89,000 of actual returns on October 10, 2023. (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. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit ber 10, 2023 Refund Liability Accounts Payable (To record returns from customers) ber 10, 2023 Estimated Inventory Returns (To record return of inventory) ber 10, 2023 [
On July 10, 2023, Cullumber Ltd. sold GPS systems to retailers on account for a selling price of $1,080,000 (cost $864,000). Cullumber grants the right to return systems that do not sell in three months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2023, following the collection on account, retailers returned systems to Cullumber and were granted credits of $89,000. The company follows IFRS. Prepare Cullumber's journal entries to record the $89,000 of actual returns on October 10, 2023. (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 O for the amounts. List all debit entries before credit entries.) Date ber 10, 2023 Account Titles and Explanation Refund Liability Debit 89000 Credit Accounts Payable (To record returns from customers) ber 10, 2023 Returned Inventory Estimated Inventory Returns (To record return of inventory) ber 10, 2023 Refund Liability Sales Revenue (To adjust refund liability for end of right of return) ber 10, 2023 Cost of Goods Sold Estimated Inventory Returns (To adjust cost of goods sold for end of right of return) 89000 On July 10, 2023, Cullumber Ltd. sold GPS systems to retailers on account for a selling price of $1,080,000 (cost $864,000). Cullumber grants the right to return systems that do not sell in three months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2023, following the collection on account, retailers returned systems to Cullumber and were granted credits of $89,000. The company follows IFRS. Prepare Cullumber's journal entries to record the $89,000 of actual returns on October 10, 2023. (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. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit ber 10, 2023 Refund Liability Accounts Payable (To record returns from customers) ber 10, 2023 Estimated Inventory Returns (To record return of inventory) ber 10, 2023 [
Chapter1: Financial Statements And Business Decisions
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