Question

Riverbed Corp. follows IFRS and sells its products in expensive, reusable containers that can be tracked. The customer is charged a deposit for each container that is delivered and receives a refund for each container that is returned within two years after the year of delivery. When a container is not returned within the time limit, Riverbed accounts for the container as being sold at the deposit amount and credits the account Container Sales Revenue. Information for 2020 is as follows: Containers held by customers at December 31, 2019, from deliveries in: 2018 $177,300 462,700 2019 $640,000 898.400 Containers delivered in 2020 Containers returned in 2020 from deliveries in: 2018 2019 2020 $119,500 315,500 318,400 753,400 Prepare all journal entries required for Riverbed Corp. for the returnable deposits during 2020. Use the account Refund Liability. (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.)

Answer 1

	Account Titles & Explanation	Debit	Credit
	Customer A/c		1,538,400.00
	Financial Liability A/c			1,538,400.00
	(To record deposit from customer)
	Financial Liability A/c		753,400.00
	Customer A/c			753,400.00
	(To record refund of deposit to customer)
	Financial Liability A/c		57,800.00
	Deferred Revenue A/c			57,800.00
	(To record deposit amount for customers not returned)
	(Revenue booked for the container not returned from 2018)
Q	Liability for reusable Container/Deposists at 31 Dec 2020
Ans				2019	147,200.00
				2020	580,000.00
					727,200.00
Q	Had riverbed followed ASPE, would any of your answer in above
	parts be different ?
Ans					Not Known