Islim Limited manufactures faux fur coats of all types and sizes that are sold to specialty stores throughout Canada. Sales to retailers provide for payment within 60 days of delivery and the retailer may return a maximum of 25% of an order at the retailer's expense for the freight. Past experience indicates that the normal return rate is 12%. Islim has a perpetual inventory system and follows IFRS. Your answer is partially correct. On July 1, 2020, Islim shipped faux furs invoiced at $2.9 million (cost $1.6 million). Prepare the journal entry to record this transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation July 1 Accounts Receivable 2,900,000 Sales Revenue 2552000 348000 Estimated Inventory Returns (To record sales on account) Cost of Goods Sold July 1 1600000 Inventory 1408000 Estimated Inventory Returns 192000 (To record cost of goods sold) On October 3, 2020, $319,000 of the invoiced July sales were returned according to the return policy, and the remaining balances on account were paid. Prepare the journal entries for the return and collection. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and entero for the amounts. Round answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Oct. 3 Refund Liability 319000 Accounts Receivable 319,000 No Entry (To record sales return) Oct. 3 Inventory 176000 Cost of Goods Sold 176000 No Entry (To record inventory returns from customers) Oct. 3 Cash 2581000 Accounts Receivable 2581000 (Collection on account)