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Business, 22.03.2021 06:50 asialuv

Stellar 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. Stellar estimates returns of 15%. Stellar 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. Prepare the journal entry for Stellar at January 2, 2020.

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