An entity sells 3,000 products for $50 each. Sales are made for cash rather than on credit terms. The entitys customary business practice is to allow a customer to return any unused product within 30 days and receive a full refund. The cost of each product is $20. To determine the transaction price, the entity decides the approach that is the most predictive of the amount of consideration to which the entity will be entitled is the most likely amount. Using the most likely amount, the entity estimates that 50 products will be returned. The entitys experience is predictive of the amount of consideration to which the entity is entitled. The entity estimates that the costs of recovering the products will be immaterial and expects that the returned products can be sold at a profit.

Required: provide the appropriate accounting journal entries to record the sale, and the subsequent return of the assets, assuming that the returns occur in accordance with expectations.