On May 15, 2023, Cullumber Ltd. sold conveyor systems to Ivanhoe Inc. on account for a selling price of $469,000 (cost $347,060) terms n/30. Cullumber 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, Ivanhoe returned systems to Cullumber and was granted credits of $39,600. By the time Ivanhoe returned the systems, Cullumbers account had been paid in full.

Assuming Cullumber follows IFRS, prepare Cullumbers journal entries to record the $39,600 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.)

Account Titles and Explanation Debit Credit July 11, 2023 (To record returns from customers.) July 11, 2023 (To record return of inventory.) July 11, 2023 (To adjust refund liability for end of right of return.) July 11, 2023 (To adjust cost of goods sold for end of right of return.)