Please answer part B

On July $10,2023,$ Crane Ltd$.$ sold GPS systems to retailers on account for a selling price of $$1,060,000($cost $$848,000.$ Crane grants

the right to return systems that do not sell in three months following delivery. Past experience indicates that the normal return rate is

$15\%.$ By October $11,2023,$ following the collection on account, retailers returned systems to Crane and were granted credits of

$$88,000.$ The company follows IFRS.

$($a$)$

Your answer is correct.

Prepare Crane's journal entries to record the sale on July $10,2023.($Credit account titles are automatically indented when the amount

is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit

entries before credit entries.$)$

$($b$)$

Prepare Crane's journal entries to record the $$88,000$ of actual returns on October $10,2023.($Credit account titles are automatically

indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for

the amounts. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

ber $10,2023$

$($To record returns from customers$)$

ber $10,2023$

$($To record return of inventory$)$

ber $10,2023$

$($To adjust refund liability for end of right of return$)$

ber $10,2023$

Debit

Credit

$[$

$($To record returns fom custoners$)$

$2$

$($To adjust cost of goods sold for end of right of return$)$

eTextbook and Media

List of Accounts