SOLVE PART (C)

Sheridan 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 of these products if not fully satisfied. The right of return extends for 4 months. Sheridan estimates returns of 15%. Sheridan sells these planters on account for $1,630,000 (cost $733,500 ) on January 2, 2025. Customers are required to pay the full amount due by March 15, 2025. (a) Prepare the journal entry for Sheridan at January 2, 2025. (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 0 for the amounts. List all debit entries before credit entries.) (b) Your answer is correct. Assume that one customer returns planters on March 1, 2025, due to unsatisfactory performance. Prepare the journal entry to record this transaction, assuming this customer purchased $108,000 of planters from Sheridan. (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 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Assume Sheridan prepares financial statements quarterly. Prepare the necessary entries (if any) to adjust Sheridan's financial results for the above transactions on March 31, 2025, assuming remaining expected returns of $136,500. (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 0 for the amounts. List all debit entries before credit entries.) N N