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 2017 is as follows:

Instructions
(a) Prepare all journal entries required for Diagnostics Corp. for the returnable deposits during 2017.
(b) Calculate the total amount that Diagnostics should report as a liability for returnable deposits at December 31, 2017.
(c) Should the liability calculated in part (b) be reported as current or long-term? Explain.
(d) Had Diagnostics followed ASPE, would any of your answers in parts (a) to (c) be different?

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Containers held by customers at December 31, 2016 from deliveries in: Containers delivered in 2017 Containers returned in 2017 from deliveries in: 2015 2016 $170,000 480,000 $650,000 894,000 2015 2016 2017 $115,000 280,000 310,400 705,400