On July Cullumber Ltd sold GPS systems to retailers on account for a selling price of $cost $
Cullumber grants the right to return systems that do not sell in three months following delivery. Past experience indicates that the
normal return rate is By October following the collection on account, retailers returned systems to Cullumber and
were granted credits of $ The company follows IFRS.
Prepare Cullumber's journal entries to record the $ of actual returns on October 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 for the amounts. List all debit entries before credit entries.
Date
Account Titles and Explanation
Debit
Credit
ber
Refund Liability
Accounts Payable
To record returns from customers
ber
Estimated Inventory Returns
To record return of inventory
ber
