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

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Pharoah 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. Pharoah sells these seeds on account for $1,570,000 (cost $785,000 ) on January 2, 2025. Customers are required to pay the full amount due by April 15,2025. (a) Prepare the journal entry for Pharoah at January 2, 2025, assuming Pharoah estimates returns of 15% based on prior experience. (List all debit entries before credit entries. 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 0 for the amounts.) Assume that one customer returns the seeds on March 1, 2025, due to unsatisfactory performance. Prepare the journal entry to record this transaction, assuming this customer purchased $102,000 of seeds from Pharoah. (Round answers to 0 decimal places, e.3. 5,125. List all debit entries before credit entries. 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.) Prepare a journal entry to record the adjusting entry for March 31st,2025 when the financial statements are prepared. Pharoah believes it's original estimate of returns is correct. (Round answers to 0 decimal places, e.s. 5,125. List all debit entries before credit entries. 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.)

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