Carla Vista 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. Carla Vista estimates returns of $15\%.$ Carla Vista sells these planters on account for $$1,390,000($cost $$764,500)$ on January $2,2025.$ Customers are required to pay the full amount due by March $15,2025.$

$($a$)$

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Prepare the joumal entry for Carla Vista 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 $0$ for the amounts. List all debit entries before credit entries.$)$

Date

Aocount Trtles and Explanation

Debit

Gredit

Jan$2,2025$

Accounts Recelvable

$1390000$

Sales Revenue

$1390000$

$($To recognize revenue.$)$

Cost of Goods Sold

Inventory

$($To record cost of goods sold.$)$

List of Accounts

Attempts: $1$ of $1$ used

$($b$)$

Assume that one customer returns planters on March $1,2025,$ due to unsatisfactory performance. Prepare the journal entry to record this transaction, assuming this customer purchased $$107,000$ of planters from Carla Vista. $($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 $D$ for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.$)$

Date

Aocount Titles and Explanation

Debit

Credi

an$.2,2025$

$$

$$

$$

$$

$$

$($To record sales returns$)$

Aar. $2\mathrm{.}2025$

$$

$$