On May 15, 2023, Crane Ltd. sold conveyor systems to Waterway Inc. on account for a selling price of $480,000 (cost $288,000) terms n/30. Crane grants the right to return systems that do not sell within two months following delivery. Past experience indicates that the normal return rate is 10%. On July 11, 2023, Waterway returned systems to Crane and was granted credits of $42,000. By the time Waterway returned the systems, Crane's account had been paid in full.

Assuming Crane follows IFRS, prepare Crane's journal entries to record the $42,000 of actual returns on July 11,2023 . (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. List all debit entries before credit entries.)