Cullumber Treasures Company sells home furnishings. On February 1, Cullumber Treasures entered into a contract with Simon Development Ltd. for home furnishings with a selling price of $ 64,000 and terms of n/30. The goods cost Cullumber $38,400. Cullumber Treasures has a stated return policy of 20 days from the date of sale and based on past transactions, management determines that returns are 5% of sales 65% of the time and 10% of sales 35% of the time. The goods were delivered to Simon Development on February 15. Cullumber Treasures uses the expected value method to estimate returns and the contract-based approach for revenue recognition. Prepare the journal entries to recognize revenue on the appropriate date. (Hint: The expected value method is also used to determine the amount for cost of goods sold and estimated inventory returns.) (Credit account titles are automatically indented wher the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Accounts Receivable 64000 Inventory Returns 4320 Sales 59680 (To record sales on account.) Gain on Fair Value Adjustment 59680 Cost of Goods Sold 4320 Cash 64000 (To record cost of goods sold.) List of Accounts Assistance Used Accounts Payable Accounts Receivable Accumulated Depreciation - Equipment Advertising Expense Allowance for Doubtful Accounts Cash Cost of Goods Sold Deferred Gross Profit Depreciation Expense Estimated Inventory Returns Equipment Gain on Fair Value Adjustment Insurance Expense Inventory Returns Land Merchandise Inventory No Entry Office Expense Prepaid Insurance Prepaid Rent Refund Liability Rent Expense Sales Service Revenue Unearned Revenue Utilities Expense