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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 10,2020, Wildhorse Company sold to Barr Hardware 220 tool sets at a price of $53 each (cost $32 per set) with terms of n/60, f.o.b. shipping point. Wildhorse allows Barr to return any unused tool sets within 60 days of purchase. Wildhorse 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 5 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 (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 Wildhorse prepares financial statements). Wildhorse belives the original estimate of returns is correct.

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