Entity A sold Product C to Entity B for many years. In order to expand its market, recently, Entity A promoted a new product, i.e. Product D. On 1 January 2020, Entity A sold 20,000 units of Product D to Entity B at a price of $88 per unit. Cash was received when control of products transferred to Entity B.

According to the contract between Entity A and Entity B, Entity A agreed with Entity B returning unused products at full price within 2 months, i.e. on or before 29 February 2020. The costs of each Product C and Product D are $55 and $48 respectively.

Entity A learnt much experience in selling Product C with different customers and estimated that 6% of Product C was commonly returned by Entity B. However, Product D is a new product, therefore Entity A did not have such experience on selling Product D. Based on the good business relationship with Entity B, Entity A estimated the return rate of Product D as a triple of the return rate of Product C.

On 29 February 2020, Entity B returned 1,600 units of Product D to Entity A. Due to a cash shortage, Entity A only repaid $50,000 back to Entity B and promised to settle the unpaid balance on or before 31 March 2020. Finally, Entity A only settled 80% of the unpaid balance on 31 March 2020.

REQUIRED:

Provide journal entries for Product D from 1 January 2020 to 31 March 2020 in accordance with relevant accounting standards.

ACCOUNT NAMES FOR INPUT:

| Road roller | Plant | Machine | Motor van | Land | Building | Inventory | Intangible assets |

| Bank | Payable | Receivable | Other income | Other expense | Interest expense | Interest revenue |

| Depreciation | Accum. depreciation | Impairment loss | Reversal of impairment loss | Goodwill |

| Loss on disposal | Gain on disposal | Restoration liability | Revaluation surplus | Revaluation deficit |

| Asset for product to be returned | Commission expense | Commission revenue | Revenue |

| Cost of sales | Refund liability | Contract asset | Contract liability | Retained earnings | No entry |

ANSWERS:

Journal Entries:

Date	Account Name	Debit ($)	Credit ($)
1-Jan-20	Blank 1	Blank 2
	Blank 3	Blank 4
	Blank 5	Blank 6
	Blank 7	Blank 8
	Blank 9	Blank 10
	Blank 11	Blank 12
	Blank 13	Blank 14
	Blank 15	Blank 16
29-Feb-20	Blank 17	Blank 18
	Blank 19	Blank 20
	Blank 21	Blank 22
	Blank 23	Blank 24
	Blank 25		Blank 26
29-Feb-20	Blank 27	Blank 28
	Blank 29	Blank 30
	Blank 31	Blank 32
	Blank 33	Blank 34
	Blank 35	Blank 36
31-Mar-20	Blank 37	Blank 38
	Blank 39	Blank 40
	Blank 41	Blank 42
	Blank 43	Blank 44