Exercise 2 All Leather Inc. is a leading designers, manufacturers, and retailers of quality leather for both women and men. The company reported the following items in its statement of financial position dated June 30, 2014, and related note disclosures (in thousands of dollars) June 30, 2014 June 30, 2013 Current Liabilities Trade Payables and Accruals Deferred Revenue Sales Returns Provision Income Tax Payable $10,161 1,463 124 $11,024 1,489 47 278 Note 10. Sales Return Provision: The provision for sales returns primarily relates to customer returns of unworn and undamaged purchases for a full refund within the time period provided by the company return policy, which is generally 14 days after the purchase date. Since the time period of the provision is of relatively short duration, all of the provision is classified as current. The following transactions occurred during the years ended June 30, 2013, and June 30, 2014, with respect to the sales return provision June 30, 2014June 30, 2013 Beginning of the period Addition Utilization End of the period S 47 1,799 (1,722) S 124 1,687 (1,640) $ 47 Required [show all your calculations] 1. Assume that the company received $17,365 from customers in advance of delivering the products they ordered. Determine the amount of deferred revenue that the company earned during fiscal year ended June 30, 2014 Prepare the journal entries to record the transactions that affected the provision for sales returns account during the fiscal year ended June 30, 2014 2