On March $10,2025,$ Ivanhoe Company sold to Kingbird Hardware $190$ tool sets at a price of $$52$ each $($cost $$32$ per On March $10,2025,$ Ivanhoe Company sold to Kingbird Hardware $190$ tool sets at a price of $$52$ each $($cost $$32$ per

set$)$ with terms of $\frac{n}{60},$ f$.$o$.$b$.$ shipping point. Ivanhoe allows Kingbird to return any unused tool sets within $60$ days of

purchase. Ivanhoe 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 $25,2025,$ Kingbird returned $7$ tool sets and received

a credit to its account.

$($a$)$

$($b$1)$

Indicate the income statement reporting by Ivanhoe at March $31,2025,$ of the information related to the Kingbird

sales transaction.

IVANHOE COMPANY

Income Statement $($Partial$)$

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Attempts: $0$ of $5$ used

$($b$2)$

Indicate the balance sheet reporting by Ivanhoe at$.$ March $31,2025,$ of the information related to the Kingbird sales

transactlon. On March $10,2025,$ Ivanhoe Company sold to Kingbird Hardware $190$ tool sets at a price of $$52$ each $($cost $$32$ per

set$)$ with terms of $\frac{n}{60},$ f$.$o$.$b$.$ shipping point. Ivanhoe allows Kingbird to return any unused tool sets within $60$ days of

purchase. Ivanhoe 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 $25,2025,$ Kingbird returned $7$ tool sets and received

a credit to its account.

$($a$)$

$($b$1)$

$($b$2)$

Indicate the balance sheet reporting by Ivanhoe at March $31,2025,$ of the information related to the Kingbird sales

transaction.

IVANHOE COMPANY

Balance Sheet $($Partial$)$

$

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List of Accounts

set$)$ with terms of $\frac{n}{60},$ f$.$o$.$b$.$ shipping point. Ivanhoe allows Kingbird to return any unused tool sets within $60$ days of

purchase. Ivanhoe 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 $25,2025,$ Kingbird returned $7$ tool sets and received

a credit to its account.

$($a$)$

Prepare journal entries for Ivanhoe to record $(1)$ the sale on March $10,2025,(2)$ the return on March $25,2025,$ and

$(3)$ any adjusting entries required on March $31,2025($when Ivanhoe prepares financial statements$).$ Ivanhoe

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. List all debit entries before credit entries.$)$

No$.$

Date

Account Titles and Explanation

Debit

$(1)$

L

$($To record sales$)$

$(2)$

$($To record cost of goods sold$)$

$($To record sal$5$ returns$)$

$($To record sal$$s returns$)$

$($To record cost of goods returned$)$

$(3)$

$($Adjusting entry for sales returns$)$

$($Adjusting entry for cost of goods sold$)$