On 1 January 2019, Entity A sold 100 units of Product X to a customer for $220 per unit payable on 31 December 2019. On the same date, the cash selling price of 1 unit of Product X is $200. The customer obtained control of the product at contract inception.

However, the contract permits the customer to return the product within 90 days, i.e. on or before 31 March 2019. The product is new and Entity A has no relevant historical evidence of product returns or other available market evidence.

On 31 March 2019, 5 units of Product X was returned.

On 31 December 2019, all outstanding amount was settled.

The cost of 1 unit of Product X to Entity A is $150. The end or reporting period of Entity A is 31 December.

REQUIRED:

Provide journal entries for Entity A from 1 January 2019 to 31 December 2019 in accordance with relevant accounting standards.

ACCOUNT NAMES FOR INPUT:

| Plant | Machine | Motor van | Equipment | 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 ($)	Credit ($)	Hints For Sequence
1-Jan-19	Blank 1	Blank 2
	Blank 3	Blank 4		Judge Dr/Cr side
	Blank 5	Blank 6		Judge Dr/Cr side
	Blank 7	Blank 8		Judge Dr/Cr side
31-Mar-19	Blank 9	Blank 10
	Blank 11		Blank 12
	Blank 13	Blank 14		Judge Dr/Cr side
	Blank 15	Blank 16		Judge Dr/Cr side
	Blank 17	Blank 18		Judge Dr/Cr side
	Blank 19	Blank 20		Judge Dr/Cr side
31-Dec-19	Blank 21	Blank 22
	Blank 23	Blank 24		Judge Dr/Cr side
	Blank 25	Blank 26		Judge Dr/Cr side
	Blank 27	Blank 28		Judge Dr/Cr side