To promote the sale of some specialty goods, Kingbird Ltd$.$ began a generous return policy for 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 $$32,000.$ Kingbird 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, Kingbird estimates that outstanding returns

will be $$2,500.$ Assuming Kingbird follows IFRS, prepare the required adjusting journal entry at the end of the reporting period. $($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