b.) Indicate the income statement and balance sheet reporting by Pronghorn at Mart 31,2020, of the information related to the Barr Sales Transaction.

On March 10, 2020, Pronghorn Company sold to Barr Hardware 160 tool sets at a price of $51 each (cost $29 per set) with terms of n/60, f.o.b. shipping point. Pronghorn allows Barr to return any unused tool sets within 60 days of purchase. Pronghorn estimates that (1) 10 sets will be returned, (2) the cost of recovering the products will be immaterial, and (3) the returned tools sets can be resold at a profit. On March 25, 2020, Barr returned 6 tool sets and received a credit to its account. Assume that instead of selling the tool sets on credit that Pronghorn sold them for cash. (a) Prepare journal entries for Pronghorn to record (1) the sale on March 10, 2020, (2) the return on March 25, 2020, and (3) any adjusting entries required on March 31, 2020 (when Pronghorn prepares financial statements). Pronghorn believes the original estimate of returns is correct. (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 for the amounts.) Debit Credit No. Account Titles and Explanation (1) (To record cash sales) (To record cost of goods sold) (2) (To record sales returns) (To record cost of goods returned) (3) (Adjusting entry for sales returns) (Adjusting entry for cost of goods sold)