On July 10, 2020,BonitaLtd. sold GPS systems to retailers on account for a selling price of $740,000(cost $592,000).Bonitagrants the right to return systems that do not sell in three months following delivery. Past experience indicates that the normal return rate is15%. By October 11, 2020, retailers returned systems toBonitaand were granted credits of $72,000. The company follows IFRS.

PrepareBonita's journal entries to record the sale on July 10, 2020.

PrepareBonita's journal entries to record the $72,000of actual returns on October 10, 2020.