On March 10, 2020, Crane Company sold to Barr Hardware 220 tool sets at a price of $50 each (cost $32 per set) with terms of n/60, f.o.b. shipping point. Crane allows Barr to return any unused tool sets within 60 days of purchase. Crane 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 7 tool sets and received a credit to its account. (a) Your answer is correct. Prepare journal entries for Crane 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 Crane prepares financial statements). Crane 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 Debit Credit 11000 Sales Revenue (To record sales) 11000 Sales Revenue For the Quarter Ended March 31, 2020 Less Sales Returns and Allowances Net Sales Cost of Goods Sold Gross profit Accounts Receivable Balance Sheet (partial) March 31, 2020 Less : Allowance for Sales Returns and Allowances Inventory 11000 500 10500 6720 3780 10650 150 $