To promote the sale of some specialty goods, Kingbird Ltd. began a generous return policy for its customers. Customers can return merchandise for up to three months following the date of the invoice, no questions asked. For the current period, sales of these specialty goods totalled $32,000. Kingbird chooses to estimate any expected sales returns at the end of each reporting period, rather than recording the Refund Liability at the point of sale. At the end of the reporting period, Kingbird estimates that outstanding returns will be $2,500. Assuming Kingbird follows IFRS, prepare the required adjusting journal entry at the end of the reporting period. (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.) Account Titles and Explanation Debit Credit
To promote the sale of some specialty goods, Kingbird Ltd. began a generous return policy for its customers. Customers can return merchandise for up to three months following the date of the invoice, no questions asked. For the current period, sales of these specialty goods totalled $32,000. Kingbird chooses to estimate any expected sales returns at the end of each reporting period, rather than recording the Refund Liability at the point of sale. At the end of the reporting period, Kingbird estimates that outstanding returns will be $2,500. Assuming Kingbird follows IFRS, prepare the required adjusting journal entry at the end of the reporting period. (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.) Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:To promote the sale of some specialty goods, Kingbird Ltd. began a generous return policy for its customers. Customers can return
merchandise for up to three months following the date of the invoice, no questions asked. For the current period, sales of these
specialty goods totalled $32,000. Kingbird chooses to estimate any expected sales returns at the end of each reporting period, rather
than recording the Refund Liability at the point of sale. At the end of the reporting period, Kingbird estimates that outstanding returns
will be $2,500. Assuming Kingbird follows IFRS, prepare the required adjusting journal entry at the end of the reporting period. (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.)
Account Titles and Explanation
Debit
Credit
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