Wildhorse Company is presently testing a number of new agricultural seed planters that it has recently developed. To stimulateinterest, it has decided to grant to five of its largest customers the unconditional right of return of these products if not fully satisfied.The right of return extends for 4 months. Wildhorse estimates returns of 20%. Wildhorse sells these planters on account for$1,400,000 (cost $700,000) on January 2, 2025. Customers are required to pay the full amount due by March 15, 2025.(a)Your answer is correct.Prepare the journal entry for Wildhorse at January 2, 2025. (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. List all debit entriesbefore credit entries.)DateJan. 2, 2025Jan. 2, 2025Account Titles and ExplanationAccounts ReceivableSales Revenue(To recognize revenue.)Cost of Goods SoldInventory(To record cost of goods sold.)Debit1400000700000Credit1400000700000 Wildhorse Company is presently testing a number of new agricultural seed planters that it has recently developed. To stimulateinterest, it has decided to grant to five of its largest customers the unconditional right of return of these products if not fully satisfied.The right of return extends for 4 months. Wildhorse estimates returns of 20%. Wildhorse sells these planters on account for$1,400,000 (cost $700,000) on January 2, 2025. Customers are required to pay the full amount due by March 15, 2025.(a)Your answer is correct.Prepare the journal entry for Wildhorse at January 2, 2025. (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. List all debit entriesbefore credit entries.)DateJan. 2, 2025Jan. 2, 2025Account Titles and ExplanationAccounts ReceivableSales Revenue(To recognize revenue.)Cost of Goods SoldInventory(To record cost of goods sold.)Debit1400000700000Credit1400000700000

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Wildhorse 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 of these products if not fully satisfied. The right of return extends for 4 months. Wildhorse estimates returns of 20%. Wildhorse sells these planters on account for $1,400,000 (cost $700,000) on January 2, 2025. Customers are required to pay the full amount due by March 15, 2025.

Wildhorse 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 of these products if not fully satisfied. The right of return extends for 4 months. Wildhorse estimates returns of 20%. Wildhorse sells these planters on account for $1,400,000 (cost $700,000) on January 2, 2025. Customers are required to pay the full amount due by March 15, 2025.

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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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Wildhorse 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 of these products if not fully satisfied.
The right of return extends for 4 months. Wildhorse estimates returns of 20%. Wildhorse sells these planters on account for
$1,400,000 (cost $700,000) on January 2, 2025. Customers are required to pay the full amount due by March 15, 2025.
(a)
Your answer is correct.
Prepare the journal entry for Wildhorse at January 2, 2025. (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. List all debit entries
before credit entries.)
Date
Jan. 2, 2025
Jan. 2, 2025
Account Titles and Explanation
Accounts Receivable
Sales Revenue
(To recognize revenue.)
Cost of Goods Sold
Inventory
(To record cost of goods sold.)
Debit
1400000
700000
Credit
1400000
700000

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