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On March 1 0 , 2 0 2 0 , Wildhorse Company sold to Barr Hardware 2 2 0 tool sets at a price of
On March Wildhorse Company sold to Barr Hardware tool sets at a price of $ each cost $ per set with terms of n fob shipping point. Wildhorse allows Barr to return any unused tool sets within days of purchase. Wildhorse estimates that sets will be returned, the cost of recovering the products will be immaterial, and the returned tools sets can be resold at a profit. On March Barr returned tool sets and received a credit to its account. Assume that instead of selling the tool sets on credit, that Wildhorse sold them for cash.
a Prepare journal entries for Wildhorse to record the sale on March the return on March and any adjusting entries required on March when Wildhorse prepares financial statements Wildhorse belives the original estimate of returns is correct.
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