Nash company is presently testing new argicultural seed planters that it has recently developed. To stimulate interest it has 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 Nash estimates return of 15% . Nash sells these planters on account for 1,400,000 (cost 630,000) on Jan 2 2020 customers are required to pay the full amount due by 03/15/2020.

Prepare the journal entry for Nash at 01/02/2020

To recognize revenue-

To record cost of goods sold-