Organic Growth Company is presently testing a number of new agricultural seed planters that it has recently developed. To stimulate interest, it has decided to grant to five of its largest customers the unconditional right of return to these products if not fully satisfied. The right of return extends for 4 months. Organic Growth estimates returns of 20%. Organic Growth sells these planters on account for $1,500,000 (cost $750,000) on January 2, 2020. Customers are required to pay the full amount due by March 15, 2020. Your answer is partially correct. Try again. Prepare the journal entry for Organic Growth at January 2, 2020. (Credit account titles are automatically Indented when 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.) Debit Credit Date Account Titles and Explanation Jan 2, 2020 Accounts Receivable Sales Revenue (To recognize revenue.) Cost of Goods Sold 11500000 5 11500000 750000 5 5 750000 Finished Goods Inventa (To record cost of goods sold.) Your answer is partially correct. Try again. Assume that one customer retums planters on March 1, 2020, due to unsatisfactory performance. Prepare the journal entry to record this transaction, assuming this customer purchased $100,000 of planters from Organic Growth and also record the entry required to pay the full amount due by March 15, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No entry for the account titles and enter for the amounts.) Debit Credit Date Mar. 1, 2020 100000 Account Titles and Explanation Sales Returns and Allowances Accounts Receivable (To record sales returns) 100000 TAllowance for Sales Re 150000 Cost of Goods Sald (To record cost of goods returned) Sacco Mar. 15, 2020 E 120000 Your answer is partially correct. Try again. Assume Organic Growth prepares financial statements quarterly. Prepare the necessary entries
Organic Growth Company is presently testing a number of new agricultu
Organic Growth Company is presently testing a number of new agricultural seed planters that it has recently developed. To stimulate interest, it has decided to grant to five of its largest customers the unconditional right of return to these products if not fully satisfied. The right of return extends for 4 months. Organic Growth estimates returns of 20%. Organic Growth sells these planters on account for $1,500,000 (cost $750,000) on January 2, 2020. Customers are required to pay the full amount due by March 15, 2020. Your answer is partially correct. Try again. Prepare the journal entry for Organic Growth at January 2, 2020. (Credit account titles are automatically Indented when 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.) Debit Credit Date Account Titles and Explanation Jan 2, 2020 Accounts Receivable Sales Revenue (To recognize revenue.) Cost of Goods Sold 11500000 5 11500000 750000 5 5 750000 Finished Goods Inventa (To record cost of goods sold.) Your answer is partially correct. Try again. Assume that one customer retums planters on March 1, 2020, due to unsatisfactory performance. Prepare the journal entry to record this transaction, assuming this customer purchased $100,000 of planters from Organic Growth and also record the entry required to pay the full amount due by March 15, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No entry for the account titles and enter for the amounts.) Debit Credit Date Mar. 1, 2020 100000 Account Titles and Explanation Sales Returns and Allowances Accounts Receivable (To record sales returns) 100000 TAllowance for Sales Re 150000 Cost of Goods Sald (To record cost of goods returned) Sacco Mar. 15, 2020 E 120000 Your answer is partially correct. Try again. Assume Organic Growth prepares financial statements quarterly. Prepare the necessary entries
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