Prepare the journal entry for Organic Growth at April 2, 2023, assuming Organic Growth estimates returns of 20% based on priorexperience. Organic follows ASPE. (Credit account titles are automatically indented when the amount is entered. Do not indentmanually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before creditentries.)DateApril 2, 2023April 2, 2023April 2, 2023Account Titles and Explanation(To record sale on account)(To accrue for sales returns)(To record cost of goods sold)DebitCredit Current Attempt in ProgressOrganic Growth Company is testing a number of new agricultural seeds that it has recently harvested. To stimulate interest, it hasdecided to grant five of its largest customers the unconditional right to return these products if not fully satisfied. The right of returnextends for four months. Organic Growth sells these seeds on account for $1,500,000 (cost $800,000) on April 2, 2023. Customersare required to pay the full amount due by June 15, 2023. The company follows IFRS.

Journal Entries: Recording journal entries is the first step in the double-entry bookkeeping system…

Organic Growth Company is testing a number of new agricultural seeds that it has recently harvested. To stimulate interest, it has decided to grant five of its largest customers the unconditional right to return these products if not fully satisfied. The right of return extends for four months. Organic Growth sells these seeds on account for $1,500,000 (cost $800,000) on April 2, 2023. Customers are required to pay the full amount due by June 15, 2023. The company follows IFRS.

Organic Growth Company is testing a number of new agricultural seeds that it has recently harvested. To stimulate interest, it has decided to grant five of its largest customers the unconditional right to return these products if not fully satisfied. The right of return extends for four months. Organic Growth sells these seeds on account for $1,500,000 (cost $800,000) on April 2, 2023. Customers are required to pay the full amount due by June 15, 2023. The company follows IFRS.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Teal 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. Teal estimates returns of 20%. Teal sells these planters on account for $1,500,000 (cost $825,000) on January 2, 2020. Customers are required to pay the full amount due by March 15, 2020. (a) Prepare the journal entry for Teal 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 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 2, 2020 (To recognize revenue.) (To record cost of goods sold.) eTextbook and Media