E18-20. S) (LO 3) Organic Growth Company is presently testing a number of new agricultural (Sales with Return seeds that it has recently harvested. To stimulate interest, it has decided to grant t customers the unconditional right of return to these products if not fully satisfied. The right of extends for 4 months. Organic Growth estimates returns of 20%. Organic Growth sells these account for $1,500,000 (cost $750,000) on January 2, 20 amount due by March 15, 2017. o five of its largest return seeds on 17. Customers are required to pay the full Instructions (a) Prepare the journal entry for Organic Growth at January 2, 2017. (b) Assume that one customer returns the seeds on March 1, 2017, due to unsatisfactory performance. Prepare the journal entry to record this transaction, assuming this customer purchased $100,000 of seeds from Organic Growth. Organic Growth prepares financial statements quarterly. Prepare the necessary entries (if (c) Assume any) to adjust Organic Growth's financial results for the above transactions on March 31, 2017, assuming remaining expected returns of $200,000. E18-20. S) (LO 3) Organic Growth Company is presently testing a number of new agricultural (Sales with Return seeds that it has recently harvested. To stimulate interest, it has decided to grant t customers the unconditional right of return to these products if not fully satisfied. The right of extends for 4 months. Organic Growth estimates returns of 20%. Organic Growth sells these account for $1,500,000 (cost $750,000) on January 2, 20 amount due by March 15, 2017. o five of its largest return seeds on 17. Customers are required to pay the full Instructions (a) Prepare the journal entry for Organic Growth at January 2, 2017. (b) Assume that one customer returns the seeds on March 1, 2017, due to unsatisfactory performance. Prepare the journal entry to record this transaction, assuming this customer purchased $100,000 of seeds from Organic Growth. Organic Growth prepares financial statements quarterly. Prepare the necessary entries (if (c) Assume any) to adjust Organic Growth's financial results for the above transactions on March 31, 2017, assuming remaining expected returns of $200,000