Diversified Industries sells perishable electronic products. Some must be shipped in reusable containers. Customers pay a deposit for each container. The deposit is equal to the container's cost. Customers receive a refund when the container is returned. During 2018, deposits collected on containers shipped were $600,000. Deposits are forfeited if containers are not returned in 18 months. Containers held by customers on January 1, 2018, were $230,000. During 2018, $310,000 was refunded and deposits of $20,000 were forfeited.

Required: 1. Prepare the appropriate journal entries for the deposits received and returned during 2018. 2. Determine the liability for refundable deposits to be reported in the December 31, 2018, balance sheet. Journal entry worksheet 4 Record the deposits collected Note: Enter debits before credits Transaction General Journal Debit Credit Cash Liability-refundable deposits Journal entry worksheet Record the containers returned. Note: Enter debits before credits Transaction General Journal Debit Credit iability-refundable deposits Cash Record entry Clear entry View general journal Journal entry worksheet Record the deposits forfeited record revenue. Note: Enter debits before credits Transaction General Journal Debit Credit iability-refundable deposits Sales revenue Record entry Clear entry View general journal Journal entry worksheet 4 Record the deposits forfeited adjust inventory. Note: Enter debits before credits Transaction General Journal Debit Credit Cost of goods sold Inventory of containers Record entry Clear entry View general journal Required 1Required 2 Determine the liability for refundable deposits to be reported deducted should be indicated with a minus sign.) Balance Sheet (partial) At December 31, 2018 Balance, Dec. 31