+ Ch 6: Homework Question 4 of 9 0.92 / 1 View Policies Show Attempt History Current Attempt in Progress On July 10, 2020, Bonita Ltd. sold GPS systems to retailers on account for a selling price of $1,020,000 (cost $816,000). Bonita 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 Bonita and were granted credits of $86,000. The company follows IFRS. Your answer is partially correct. Prepare Bonita's journal entries to record the $86,000 of actual returns on October 10, 2020. (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 for the amounts.) Debit Credit Date October 10, 2020 Account Titles and Explanation Refund Liability 86000 Accounts Receivable 86000 (To record returns from customers) October 10, 2020 Returned Inventory 68800 Estimated Inventory Returns 68800 (To record retum of inventory) October 10, 2020 Refund Liability 67000 Sales Revenue 67000 (To adjust refund liability for end of right of return) October 10, 2020 Cost of Goods Sold 53600 53600 (To adjust cost of goods sold for end of right of return)