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Question 2 To promote the sale of some specialty goods, Splish Brothers Ltd. began a generous return policy to its customers. Customers can return merchandise
Question 2 To promote the sale of some specialty goods, Splish Brothers Ltd. began a generous return policy to its customers. Customers can return merchandise for up to three months following the date of the invoice, no questions asked. For the current period, sales of these specialty goods totalled $38,700. Splish Brothers chooses to estimate any expected sales returns at the end of each reporting period, rather than recording the Refund Liability at the point of sale. At the end of the reporting period, Splish Brothers estimates that outstanding returns will be $2,960. Assuming Splish Brothers follows IFRS, prepare the required adjusting journal entry at the end of the reporting period. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Account Titles and Explanation Debit Credit
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