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Marigold Ltd. operates a microbrewery and sells beer directly to customers, bars, and restaurants. Marigold uses one-litre blue glass refillable bottles featuring a swing-top ceramic

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Marigold Ltd. operates a microbrewery and sells beer directly to customers, bars, and restaurants. Marigold uses one-litre blue glass refillable bottles featuring a swing-top ceramic lid. The bottles cost Marigold $6.9 each. Marigold charges customers a refundable deposit of $7 for each bottle at the point of sale of their beer and records amounts received to the account Returnable Deposits. The $7 deposit amount is standard for this specialized segment of the microbeer industry and is close to the cost of the bottles. In addition, since the bottle returns must be made at the brewery location, Marigold is using this relatively high deposit amount as a marketing strategy because it provides an incentive for customers to return to the brewery to have their bottles refilled. Based on past experience, Marigold estimates that 70% of the bottles do not get returned for refund. Marigold makes an adjustment at the end of the fiscal year for unreturned deposits to the account Container Sales Revenue. Using the periodic system, prepare a summary journal entry for the cash sale of 4 400 bottles of beer with a selling price of $9. plus bottle deposit recorded to Refund Liability. (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 enter for the amounts.) Using the periodic system prepare a summary journal entry for the cash sale of 4,400 bottles of beer with a selling price of $9, plus bottle deposit recorded to Refund Liability. (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 enter O for the amounts.) Account Titles and Explanation Debit Credit Cash 16000 Container Sales Revenue 9000 Accounts Receivable 7000 Prepare the year-end adjusting entry for unreturned bottles using the information provided and your entry in part (a). (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 enter for the amounts.) Debit Credit Account Titles and Explanation

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