Comfletics Inc. makes and sells athletic wear to a variety of Canadian retailers. Comfletics has 9 marks recently added a new hoodie to its product line that is water and stain resistant. To

encourage its customers to purchase these new hoodies, it offers a generous return policy. Retailers can return the hoodies within 90 days of purchase for a full refund. Other information regarding the sale of these hoodies on May 31, 2023 follows:

Sales price per hoodie

Cost per hoodie

Number of hoodies sold on May 31

Percentage of hoodies estimated to be returned within 90 days of sale

The only date on which hoodies were returned was July 7, 2023. The following number of hoodies were returned:

$ 69 $ 41 588

4%

18

Comfletics Inc. makes all sales on account. All customer invoices are due to be paid 30 days from the date of sale.

Comfletics follows IFRS.

Required:

1. Prepare any journal entries required for Comfletics on May 31, 2023. (5 marks)

2. Prepare any journal entries required for Comfletics on July 7, 2023. (2 marks)

3. Prepare any journal entries required for Comfletics at the end of the return period.