On July 10, 2020, Pearl Ltd. sold GPS systems to retailers on account for a selling price of $700,000 (cost $560,000). Pearl 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 Pearl and were granted credits of $70,000. The company follows IFRS. . Your answer is partially correct. Prepare Pearl's 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 for the amounts.) Date Account Titles and Explanation Debit Credit July 10, 2020 Refund Liability Sales Revenue (To record sale) July 10, 2020 Cost of Goods Sold Estimated Inventory Returns Inventory (To record cost of goods sold) Prepare Pearl's journal entries to record the $70,000 of actual returns on October 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 O for the amounts.) Date Account Titles and Explanation Debit Credit October 10, 2020 70000 70000 (To record returns from customers) October 10, 2020 56000 56000 (To record return of inventory) October 10, 2020 (To adjust refund liability for end of right of return) October 10, 2020 (To adjust cost of goods sold for end of right of return)