Prepare pearl journal entries to record the sale on july

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On July 10, 2020, Pearl Ltd. sold GPS systems to retailers on account for a selling price of $840,000 (cost $672,000). Pearl grants the right to return systems that do not sell in three months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2020, retailers returned systems to Pearl and were granted credits of $77,000. The company follows IFRS.

Problem 1: Prepare Pearl's journal entries to record the sale on July 10, 2020. (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.)

Problem 2: Prepare Pearl's journal entries to record the $77,000 of actual returns on October 10, 2020. (Hint: Use Accounts Payable for the amount returned.) (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.)

Reference no: EM132685125

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