Marlin Pools and Spas sold 80 hot tubs at $4,500 each. The cost of the hot tubs to Marlin is $2,600. The terms of the sale include a right to return for full refund within 30 days of purchase. Marlin expects that 3 of the hot tubs will be returned. Marlin follows IFRS 15.

a) Record the journal entries related to the above transactions. Assume 1 hot tub is returned within the 30 days.

b) Now assume Marlin uses ASPE, prepare the journal entries for the above transactions.

Answer rating: 100% (QA)

A Under IFRS 15 SALE WITH A RIGHT OF RETURN Accounts Debit C... View the full answer