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Patty Corp. delivers 3,200 units to a new customer on 1 April for $80 /unit. Patty Corp has a return policy where they allow any
Patty Corp. delivers 3,200 units to a new customer on 1 April for $80 /unit. Patty Corp has a return policy where they allow any customer to return any unused product within 45 days and receive a full refund. The cost of each product is $64. Based on historical experience Patty is unable to estimate the return pattern for this customer, however, they expect to be able to resell any returned goods. Assume that 50 products are returned on 2 May. No additional units are returned by 15 May (the end of the return period). Required: Prepare the journal entries related to the sale of products using IFRS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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