QUESTION 11 Entity A is a listed company in Hong Kong. Its business is trading nature. On 1 January 2023, Entity A sold 360 units of Product X to Entity B for $378 per unit payable on 31 December 2023. On 31 December 2023, the cash sale price of Product X was $420. The customer obtained control of the product at contract inception. However, the contract permits the customer to return the product within 90 days, i.e. on or before 31 March 2023. Product X is a new product. It suffered insufficient testing before the sales to Entity B on 1 January 2023. Thus, Entity A has no relevant historical evidence or other available market evidence of the product returns. On 31 March 2023, 108 units of Product X were returned. On 31 December 2023, all outstanding amount was settled. The cost of Product X is $270. The end of the reporting period of Entity A is 31 December. REQUIRED: Provide journal entries for Entity A from 1 January 2023 to 31 December 2023 under relevant accounting standards. ACCOUNTS FOR INPUT: | Bank | Payable | Receivable | Interest expense | Interest revenue | Inventory | PPE | | Asset for product to be returned | Commission expense | Commission revenue | Revenue | | Cost of sales | Contract asset | Contract liability | Retained earnings | No entry | ANSWERS: Journal Entries: Date 1-Jan-23 31-Mar-23 31-Mar-23 31-Dec-23 31-Dec-23 Account Name Debit ($) Credit ($) Hints For Sequence