Pearl 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. Pearl estimates returns of 15%. Pearl 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. Your answer is correct. Prepare the journal entry for Pearl 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.) Date Account Titles and Explanation Debit Credit 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 Pearl 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 Ofor the amounts.) Debit Credit Date Mar. 1, 2020 Account Titles and Explanation | Sales Returns and Allowances 97,000 Accounts Receivable 97,000 (To record sales returns) Returned Inventory 646,666 646,666 Cost of Goods Sold (To record cost of goods returned) | Cash Mar. 15, 2020 1,453,000 Accounts Receivable 1,453,000 Assume Pearl prepares financial statements quarterly. Prepare the necessary entries (if any) to adjust Pearl'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.) Credit Date Account Titles and Explanation Mar. 31, 2020 Sales Returns and Allowances Debit 135,500 Allowance for Sales Returns and Allowances 135,500 (To record sales returns) Estimated Inventory Returns 97,000 Cost of Goods Sold 97,000 (To record cost of goods returned)