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Ivanhoe Growth Company is presently testing a number of new agricultural seeds that it has recently harvested. To stimulate interest, it has decided to grant

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Ivanhoe Growth Company is presently 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. Ivanhoe Growth sells these seeds on account for $2,000,000 (cost $1,100,000) on April 2, 2017. Customers are required to pay the full amount due by June 15, 2017. The company follows IFRS. Prepare the journal entry for Ivanhoe Growth at April 2, 2017, assuming Ivanhoe 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.) Date Account Titles and Explanation Debit Credit April 2, 2017 Accounts Receivable Refund Liability Sales Revenue (To record sales.) April 2, 2017 Estimated Inventory Returns Cost of Goods Sold Inventory (To record cost of goods sold.) Assume that one customer returns the seeds on June 1, 2017. Prepare the journal entry to record this transaction, assuming this customer purchased $150,000 of seeds from Ivanhoe 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. Round answers to o decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit June 1, 2017 Refund Liability Accounts Receivable (To record the sales return.) June 1, 2017 Inventory Estimated Inventory Returns (To record inventory return.)

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