Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective

containers. Customers pay a deposit for each container received. The deposit is equal to the container's cost. They receive a refund

when the container is returned. During $2024,$ deposits collected on containers shipped were $$889,000.$

Deposits are forfeited if containers are not returned within $18$ months. Containers held by customers at January $1,2024,$ represented

deposits of $$533,000.$ In $2024,$$$824,000$ was refunded and deposits forfeited were $$55,500.$

Required:

Prepare the appropriate journal entries for the deposits received, returned, and forfeited during $2024.$

Determine the liability for refundable deposits to be reported on the December $31,2024,$ balance sheet.

Complete this question by entering your answers in the tabs below.

Prepare the appropriate journal entries for the deposits received, returned, and forfeited during $2024.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet