Question

Question 2 Skysong 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 retum extends for 4 months. Skysong estimates returns of 15%. Skysong sells these planters on account for $1,390,000 (cost $764,500) on January 2, 2020. Customers are required to pay the full amount due by March 15, 2020 Prepare the journal entry for Skysong at January 2, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If ne entry is required, select "No entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 2, 2020 (To recogte revenue) (To record cost of goods sold.) LINK TO TEXT

Answer 1

Solution credit $ 1,390,000 1390,000 Date Account Titles and Explanation Debit, 2020 Jank Accounts Receivable &oues Revenue (to recognize Revenue) Jan2 Cost of Goods sald 764,500 Merchandive taleza Inventory planters (To record cost of goods sold) 764,500 Marich 1 90,000 Sales Retwins and Allowance Accounts Receivable (To record sales retwins 90,000 March Merchandise Inventory, 49,500 - Planteris 49,500 Cost of Goods sold (To record cost of Goods sold retwined) $764,500 L$ 1,390,000 x 90,000 90,000 March 31 Sales Retion and allowancet Estimated 118,500 Accounts Receivable (To erecord sales Return) 118 500 Moorch 65,175 Estimated 65,175 Merchandise Inventory, Planters cost of Goods sold (To record cost of Goods retwined) 118,500 $ 764,500 $ 1,390,000