On July 10, 2020, Amodt Ltd. sold GPS systems to retailers on account for a selling price of $700,000 (cost $560,000). Amodt 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, 2020, retailers returned systems to Amodt and were granted credits of $78,000. Prepare Amodt’s journal entries to record

(a) The sale on July 10, 2020, including any expected returns,

(b) The $78,000 of actual returns on October 10, 2020. The company follows IFRS.