E$13\mathrm{.}4($LO $3,9)($Liability for Returnable Containers$)$ Diagnostics Corp. follows IFRS and sells its products in expensive, reusable containers that can be tracked. The customer is charged a deposit for each container that is delivered and receives a refund for each container that is returned within two years after the year of delivery. When a container is not returned within the time limit$,$ Diagnostics accounts for the container as being sold at the deposit amount and credits the account Container Sales Revenue. Information for $2023$ is as follows:

Containers held by customers at December $31,2022,$ from deliveries in:

$2021$

$$170,000$

$2022$

$480,000$

$$650,000$

Containers delivered in $2023$

$894,000$

Containers returned in $2023$ from deliveries in:

$2021$

$$115,000$

$2022$

$280,000$

$2023$

$310,400$

$705,400$

Instructions

Prepare all journal entries required for Diagnostics for the returnable deposits during $2023.$ Use the account Deposits.

Calculate the total amount that Diagnostics should report as a liability for returnable deposits at December $31,2023.$

Should the liability calculated in part $($b$)$ be reported as current or long term? Explain.

Had Diagnostics followed ASPE, would any of your answers in parts $($a$)$ to $($c$)$ be different?