Danier Leather Inc. is one of North America€™s leading designers, manufacturers, and retailers of quality leather and suede for both women and men. The company reported the following items in its statement of financial position dated June 30, 2012, and related note disclosures (in thousands of Canadian dollars):

Note 10. Sales Return Provision: The provision for sales returns primarily relates to customer returns of unworn and undamaged purchases for a full refund within the time period provided by Danier€™s return policy, which is generally 14 days after the purchase date. Since the time period of the provision is of relatively short duration, all of the provision is classified as current. The following transactions occurred during the years ended June 30, 2012, and June 25, 2011, with respect to the sales return provision:

Required:
1. Define each of the current liabilities and identify the types of transactions that cause each liability to change (increase, decrease).
2. Assume that the company received $ 17,365 from customers in advance of delivering them the products they ordered. Determine the amount of deferred revenue that the company earned during fiscal year 2012, and prepare the related journal entries to record the transactions that affected the deferred revenue account.
3. Prepare the journal entries to record the transactions that affected the provision for sales returns account during 2012.

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June 30, 2012 June 25, 2011 Current liabilities Payables and accruals Deferred revenue Sales return provision (Note 10) Income taxes payable $10,161 1,463 124 $11,024 1.489 47 278 June 30, 2012 $ 47 1.799 1.722) $ 124 June 25, 2011 Beginning of period Amount provided during the period Released during the period Endofperiod 1,687 (1.640) $47