Carla Vista Company sells $300$ units of its products for $$15$ each to Pharoah Inc. for cash. Carla Vista allows Pharoah to return any

unused product within $30$ days and receive a full refund. The cost of each product is $$10.$ To determine the transaction price, Carla

Vista decides that the approach that is most predictive of the amount of consideration to which it will be entitled is the probability$-$

weighted amount. Using the probability$-$weighted amount, Carla Vista estimates that $(1)7$ products will be returned, and $(2)$ the

returned products are expected to be resold at a profit.

Prepare the journal entries for Carla Vista at the time of the sale to Pharoah including any expected returns. The company follows

IFRS. $($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.$)$

Account Titles and Explanation

Debit

Credit

$($To record cash sale$)$

$($To record cost of goods sold$)$