Question
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
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.
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
IFRS Edition
978-1118443965, 1118800532, 9781118800539, 978-0470873991
