Wildhorse 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. Wildhorse sells these seeds on account for $1,400,000 (cost $700,000) on January 2, 2025. Customers are required to pay the full amount due by April 15, 2025. Your answer is correct. Prepare the journal entry for Wildhorse at January 2, 2025, assuming Wildhorse estimates returns of 20% 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 O for the amounts.) (b) Date Account Titles and Explanation Jan. 2, 2025 Accounts Receivable Sales Revenue (To recognize revenue.) Jan. 2, 2025 Cost of Goods Sold Inventory (To record cost of goods sold.) eTextbook and Media List of Accounts Debit 1400000 700000 Credit 1400000 700000 Attempts: 1 of 5 used Your Answer Correct Answer (Used) 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 $105,000 of seeds from Wildhorse. (Round answers to O decimal places, e.g. 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.) (c) Date Account Titles and Explanation March 1, 2025 Sales Returns and Allowances Accounts Receivable (To record sales returns) Returned Inventory Cost of Goods Sold (To record cost of goods returned) Your answer is partially correct. Debit 105,000 52,500 Credit 105,000 52,500 Prepare a journal entry to record the adjusting entry for March 31**, 2025 when the financial statements are prepared. Wildhorse believes it's original estimate of returns is correct. (Round answers to O decimal places, e.g. 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.) Date Account Titles and Explanation Debit Credit March Sales Returns and Allowances 31, 2025 March 31, 2025 (To record sales returns) Cost of Goods Sold (To record cost of goods returned)