Exercise 18-17 (Part Level Submission) On March 10, 2020, Marigold Company sold to Barr Hardware 200 tool sets at a price of $51 each (cost $28 per set) with terms of 1/60, F.o.b. shipping point. Marigold allows Barr to return any unused tool sets within 60 days of purchase. Marigold 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 Marigold sold them for cash. (a) Your answer is correct. Prepare journal entries for Marigold 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 Marigold prepares financial statements). Marigold 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.) No. Account Titles and Explanation Debit Credit (19 cash T 102001 10200 T Sales Revenue To record cash sales) TCost of Goods Sold 5600 5600 T Inventory (To record cost of goods sold) (2) Sales Returns and Allowan Accounts Payable (To record cost of goods sold) (2) Sales Returns and Allowan I Accounts Payable (To record sales returns) Returned Inventory 1 Cost of Goods Sold (To record cost of goods returned) (3) Sales Returns and Allowan 1 Accounts Payable (Adjusting entry for sales returns) 1 Estimated Inventory Retur Cost of Goods Sold (Adjusting entry for cost of goods old) 112 Indicate the income statement and balance sheet reporting by Marigold at March 31, 2020, of the information related to the Barr sales. (List Assets in order of liquidity.) Income Statement partial) For the Quarter Ended March 31, 2020: 10200 Sales Revenue Alessa Sales Returns and Alowan Net Sales Cost of Goods Sold Gross profit Balance Sheet (partial) March 31, 2020