On July 10, 2020, Headlands Ltd. sold GPS systems to retailers on account for a selling price of $720,000 (cost $576,000). Headlands grants the right to return systems that do not sell in three months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2020, retailers returned systems to Headlands and were granted credits of $71,000. The company follows IFRS.

Prepare Headlandss journal entries to record the sale on July 10, 2020. (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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
July 10, 2020	enter an account title to record sale	enter a debit amount	enter a credit amount
	enter an account title to record sale	enter a debit amount	enter a credit amount
	enter an account title to record sale	enter a debit amount	enter a credit amount
	(To record sale)
July 10, 2020	enter an account title to record cost of goods sold	enter a debit amount	enter a credit amount
	enter an account title to record cost of goods sold	enter a debit amount	enter a credit amount
	enter an account title to record cost of goods sold	enter a debit amount	enter a credit amount
	(To record cost of goods sold)

eTextbook and Media

List of Accounts

Prepare Headlandss journal entries to record the $71,000 of actual returns on October 10, 2020. (Hint: Use Accounts Payable for the amount returned.) (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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
October 10, 2020	enter an account title to record returns from customers	enter a debit amount	enter a credit amount
	enter an account title to record returns from customers	enter a debit amount	enter a credit amount
	(To record returns from customers)
October 10, 2020	enter an account title to record return of inventory	enter a debit amount	enter a credit amount
	enter an account title to record return of inventory	enter a debit amount	enter a credit amount
	(To record return of inventory)
October 10, 2020	enter an account title to adjust refund liability for end of right of return	enter a debit amount	enter a credit amount
	enter an account title to adjust refund liability for end of right of return	enter a debit amount	enter a credit amount
	(To adjust refund liability for end of right of return)
October 10, 2020	enter an account title to adjust cost of goods sold for end of right of return	enter a debit amount	enter a credit amount
	enter an account title to adjust cost of goods sold for end of right of return