On March 10, 2020, Bonita Company sold to Barr Hardware 200 tool sets at a price of $47 each (cost $28 per set) with terms of n/60, f.o.b. shipping point. Bonita allows Barr to return any unused tool sets within 60 days of purchase. Bonita 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 6 tool sets and received a credit to its account. (a) Your answer is correct. Prepare journal entries for Bonita 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 Bonita prepares financial statements). Bonita 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 Debit 9400 Credit 9400 (To record sales) Cost of Goods Sold Inventory (To record cost of goods sold) (2) Sales Returns and Allowances Accounts Receivable (To record sales returns) Returned Inventory Cost of Goods Sold (To record cost of goods returned) (3) Sales Returns and Allowances Allowance for Sales Returns and Allowances (Adjusting entry for sales returns) Estimated Inventory Returns Cost of Goods Sold 5600 282 168 188 112 5600 282 168 188 112 Indicate the income statement and balance sheet reporting by Bonita at March 31, 2020, of the information related to the Barr sales transaction. Income Statement (partial) For the Quarter Ended March 31, 2020 $ Balance Sheet (partial) $ $