Crane 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. Crane Growth sells these seeds on account for $1,400,000 (cost $1,100,000) on April 2, 2020. Customers are required to pay the full amount due by June 15, 2020. The company follows IFRS. Prepare the journal entry for Crane Growth at April 2, 2020, assuming Crane Growth estimates returns of 20% based on prior experience. (Credit account titles are automatically indented when the 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 April 2, 2020 (To record sale on account) April 2, 2020 (To record cost of goods sold) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO VIDEO Assume that one customer returns the seeds on June 1, 2020. Prepare the journal entry to record this transaction, assuming this customer purchased $90,000 of seeds from Crane Growth. (Credit account titles are automatically indented when the 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.) Date Account Titles and Explanation Debit Credit July 1, 2020 (To record return from customer) July 1, 2020 (To record return of inventory) Prepare the journal entry for Crane Growth at April 2, 2020, assuming Crane Growth estimates returns of 20% based on prior experience. Crane follows ASPE. (Credit account titles are automatically indented when the 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.) Date Account Titles and Explanation Debit Credit April 2, 2020 (To record sale on account) April 2, 2020 (To accrue for sales returns) April 2, 2020 (To record cost of goods sold) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO VIDEO Assume that one customer returns the seeds on July 1, 2020. Prepare the journal entry to record this transaction, assuming this customer purchased $90,000 of seeds from Crane Growth. Crane follows ASPE. (Credit account titles are automatically indented when the 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. Round answers to o decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit July 1, 2020 (To record return from customer) July 1, 2020 (To record return of inventory)
