On July 10, 2023, Pharoah Ltd. sold GPS systems to retailers on account for a selling price of $920,000 (cost $736,000). Pharoah 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, 2023, following the collection on account, retailers returned systems to Pharoah and were granted credits of $81,000. The company follows ASPE. (a) Prepare Pharoah's journal entries to record the sale on July 10, 2023. (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 O for the amounts. List all debit entries before credit entries.)

Assuming the current ratio equals 2, which of the following would cause the current ratio to increase? O Accrual for payroll. Declaration of cash dividend. O Payment for inventory purchased on account. O Inventory purchased on account.

Define Prepayments.

Explain an example of external events.