To promote the sale of some specialty goods, Shamrock 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 $35,900. Shamrock 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, Shamrock estimates that outstanding returns will be $2,700. Assuming Shamrock 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 Refund Liability Debit Credit
To promote the sale of some specialty goods, Shamrock 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 $35,900. Shamrock 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, Shamrock estimates that outstanding returns will be $2,700. Assuming Shamrock 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 Refund Liability Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dineshbhai
Transcribed Image Text:To promote the sale of some specialty goods, Shamrock 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 $35,900. Shamrock 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, Shamrock estimates that outstanding
returns will be $2,700. Assuming Shamrock 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
Refund Liability
Debit
Credit
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