Question: DD sells perishable electronic componesnts. Some must be shipped and stored in reusable protective containers. Customers pay a desposit for each container received. The

DD sells perishable electronic componesnts. Some must be shipped and stored in

DD sells perishable electronic componesnts. Some must be shipped and stored in reusable protective containers. Customers pay a desposit for each container received. The deposits is equal to the containers cost. They receive a refund when the container is returned. During 2021, deposits collect on containers shipped were 934000. Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at Jan 1 2021 represents deposits of 565000. In 2021, 825000 was refunded and deposited forfeited were 47500. 1. Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2021. a. Record the deposits collected. b. Record the containers returned. c. Record the deposits forfeited - record revenue. d. Record the deposits forfeited - adjust inventory. 2. Determine the liability for refundable deposits to be reported on the Dec 31 2021 balance sheet.

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