Current Attempt in Progress 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 15%. Teal sells these planters on account for $1,550,000 (cost $697,500) on January 2, 2020. Customers are required to pay the full amount due by March 15, 2020. 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 O for the amounts.) Account Titles and Explanation Debit Credit Date Jan. 2, 2020 Accounts Receivable 1,550,000 Sales Revenue 1,550,000 (To recognize revenue.) Cost of Goods Sold 697,500 Inventory 697,500 (To record cost of goods sold.) Assume that one customer returns planters on March 1, 2020, due to unsatisfactory performance. Prepare the journal entry to record this transaction, assuming this customer purchased $97,000 of planters from Teal and also record the entry required to pay the full amount due by March 15, 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 O for the amounts.) Date Account Titles and Explanation Debit Credit (To record sales returns) (To record cost of goods returned) Assume Teal prepares financial statements quarterly. Prepare the necessary entries (if any) to adjust Teal's financial results for the above transactions on March 31, 2020, assuming remaining expected returns of $135,500. (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.) Account Titles and Explanation Debit Credit Date Mar. 31, 2020 (To record sales returns) (To record cost of goods returned)