Homework Problems Question 7 of 14 Current Attempt in Progress 1.67/2 E On March 10, 2020, Headland Company sold to Barr Hardware 240 tool sets at a price of $50 each (cost $31 per set) with terms of n/60, to.b. shipping point. Headland allows Barr to return any unused tool sets within 60 days of purchase. Headland 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 7 tool sets and received a credit to its account. (a) Your answer is correct Prepare journal entries for Headland 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 Headland prepares financial statements). Headland 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 O for the amounts.) No. Account Titles and Explanation (1) Accounts Receivable Sales Revenue (To record sales) Debit Credit 12000 12000