Exercise 18-17 On March 10, 2017, Waterway Company sold to Barr Hardware 200 tool sets at a price of S51 each (cost $28 per set) with terms of n/60, f.o.b. shipping point. Waterway allows Barr to return any unused tool sets within 60 days of purchase. Waterway 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, 2017, Bar returned 6 tool sets and received a credit to its account. Assume that instead of selling the tool sets on credit, that Waterway sold them for cash. Your answer is partially correct. Try again. Prepare journal entries for Waterway to record (1) the sae on arch 10, 2017, (2) the return on March 25, 2017, and (3) any adjusting entries required on March 31, 2017 (when Waterway prepares financial statements). Waterway 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 0 for the amounts.) No. Account Titles and Explanation Debit Credit (1) Accounts Receivable 10200 Salat Ravanua (To record sales) Cost of Goods Sold 10200 Inventory 5600 (To record cost of goods sold) Exercise 18-17 On March 10, 2017, Waterway Company sold to Barr Hardware 200 tool sets at a price of S51 each (cost $28 per set) with terms of n/60, f.o.b. shipping point. Waterway allows Barr to return any unused tool sets within 60 days of purchase. Waterway 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, 2017, Bar returned 6 tool sets and received a credit to its account. Assume that instead of selling the tool sets on credit, that Waterway sold them for cash. Your answer is partially correct. Try again. Prepare journal entries for Waterway to record (1) the sae on arch 10, 2017, (2) the return on March 25, 2017, and (3) any adjusting entries required on March 31, 2017 (when Waterway prepares financial statements). Waterway 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 0 for the amounts.) No. Account Titles and Explanation Debit Credit (1) Accounts Receivable 10200 Salat Ravanua (To record sales) Cost of Goods Sold 10200 Inventory 5600 (To record cost of goods sold)