It was 8: 00 a. m. on saturday morning. liz just learned that her well-meaning cousins were headed over to her unpack her household. she had just moved back to chicago from the west coast. were they really planning to work, or were they expecting brunch? a bagel and pastry shop was just up the road. she would call in a food order. when she arrived to pick it up, it was not what she ordered. the store associate quickly made it right, and offered an extra dozen bagels to make up for the mistake. there was no need to check with the supervisor, as the employee was to make decisions that translate into good customer service.

Diversified semiconductors sells perishable electronic components. some must be shipped and stored in reusable protective containers. customers pay a deposit for each container received. the deposit is equal to the container’s cost. they receive a refund when the container is returned. during 2018, deposits collected on containers shipped were $856,000. deposits are forfeited if containers are not returned within 18 months. containers held by customers at january 1, 2018, represented deposits of $587,000. in 2018, $811,000 was refunded and deposits forfeited were $41,000. required: 1. prepare the appropriate journal entries for the deposits received and returned during 2018. 2. determine the liability for refundable deposits to be reported on the december 31, 2018, balance sheet.