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On March 1 0 , 2 0 2 5 , Cullumber Company sold to Bonita Hardware 2 2 0 tool sets at a price of
On March Cullumber Company sold to Bonita Hardware tool sets at a price of $ each cost $ per set with terms of
fob shipping point. Cullumber allows Bonita to return any unused tool sets within days of purchase. Cullumber 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 Bonita returned tool sets and received a credit to its account. Assume that instead of selling the tool
sets on credit, that Cullumber sold them for cash.
a
Prepare journal entries for Cullumber to record the sale on March the return on March and any
adjusting entries required on March when Cullumber prepares financial statements Cullumber 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. List all debit entries before credit entries.
No
Date
Account Titles and Explanation
Debit
March
To record cash sales
Sales Returns and Allowances
To record sales returns
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