Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container$$s cost$.$ They receive a refund when the container is returned. During $2018,$ deposits collected on containers shipped were $$869,000.$

Deposits are forfeited if containers are not returned within $18$ months. Containers held by customers at January $1,2018,$ represented deposits of $$592,000.$ In $2018,$ $$808,000$ was refunded and deposits forfeited were $$45,500.$

Requir

ed:

$1.$ Prepare the appropriate journal entries for the deposits received and returned during $2018.$

$2.$ Determine the liability for refundable deposits to be reported on the December $31,2018,$ balance sheet.