Novak Company is presently testing a number of new agricultural seeds that it has recently harvested. 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. Novak sells these seeds on account for $1,400,000 (cost $630,000) on January 2, 2020. Customers are required to pay the full amount due by March 15, 2020. (a) Prepare the journal entry for Novak at January 2, 2020, assuming Natural Growth estimates returns of 10% based on prior experience. (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 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 2, 2020 (To recognize revenue.) (To record cost of goods sold.)