To promote the sale of some specialty goods, Sage Hill 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 $$37,300.$ Sage Hill chooses to estimate any expected sales returns at the end of each reporting period, rather than recording the Refund Liability at the point of sale. At the end of the reporting period, Sage Hill estimates that outstanding returns will be $$3,700.$ Assuming Sage Hill 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

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