Cullumber 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. Cullumber Growth sells these seeds on account for $1,950,000 (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. Your answer is partially correct. Prepare the journal entry for Cullumber Growth at April 2, 2020, assuming Cullumber 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.) Account Titles and Explanation Debit Credit Date April 2, 2020 Accounts Receivable 1950000 Sales Revenue 1950000 No Entry (To record sale on account) April 2, 2020 Cost of Goods Sold 1100000 Inventory 100000 No Entry 0 (To record cost of goods sold) Your answer is partially correct. Assume that one customer returns the seeds on July 1, 2020. Prepare the journal entry to record this transaction, assuming this customer purchased $120,000 of seeds from Cullumber 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 for the amounts.) Debit Credit Date July 1, 2020 Account Titles and Explanation Sales Returns and Allowances 120000 Accounts Receivable 120000 (To record return from customer) July 1, 2020 Returned Inventory 67692.30 Cost of Goods Sold 67692.30 (To record return of inventory) Prepare the journal entry for Cullumber Growth at April 2, 2020, assuming Cullumber Growth estimates returns of 20% based on prior experience. Cullumber 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 for the amounts.) Debit Credit Date April 2, 2020 Account Titles and Explanation Accounts Receivable Sales Revenue (To record sale on account) April 2, 2020 (To accrue for sales returns) April 2, 2020 (To record cost of goods sold) Assume that one customer returns the seeds on July 1, 2020. Prepare the journal entry to record this transaction, assuming this customer purchased $120,000 of seeds from Cullumber Growth. Cullumber 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 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit Date July 1, 2020 (To record return from customer) July 1, 2020 (To record return of inventory)