Sunland Growth Company is testing a number of new agricultural seeds that it has recently harvested. To stimulate interest, it has decided to grant five of its largest customers the unconditional right to return these products if not fully satisfied. The right of return extends for four months. Sunland Growth sells these seeds on account for $2,000,000 (cost $1,100,000) on April 2, 2020. Customers are required to pay the full amount due by June 15, 2020. The company follows IFRS

Prepare the journal entry for Sunland Growth at April 2, 2020, assuming Sunland Growth estimates returns of 20% based on prior experience. Sunland follows ASPE. (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.) Date Account Titles and Explanation Debit Credit April 2, 2020 Sales Revenue (To record sale on account) (To accrue for sales returns) (To record cost of goods sold) April 2, 2020 April 2, 2020 Assume that one customer returns the seeds on July 1, 2020. Prepare the journal entry to record this transaction, assuming this customer purchased $100,000 of seeds from Sunland Growth. Sunland follows ASPE. The customer had already paid by June 15 for the delivery. (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. Round answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Sales Returns and Allowances (To record return from customer) (To record return of inventory) July 1, 2020 July 1, 2020 eTextbook and Media List of Accounts