On March 10, 2020, Splish Company sold to Barr Hardware 170 tool sets at a price of $50 each (cost $32 per set) with terms of n/60, f.o.b. shipping point. Splish allows Barr to return any unused tool sets within 60 days of purchase. Splish 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. Assume that instead of selling the tool sets on credit, that Splish sold them for cash.

Prepare journal entries for Splish 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 Splish prepares financial statements). Splish 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.)

No. Account Titles and Explanation Debit Credit 3 (1) Cash 8500 Sales Revenue 8500 (To record cash sales) Cost of Goods Sold 5440 Inventory 5440 (To record cost of goods sold) | DL NE (2) Sales Returns and Allowances 300 Accounts Payable LIDO 300 (To record sales returns) Returned Inventory 192 Cost of Goods Sold 192 (To record cost of goods returned) (3) Sales Returns and Allowances 200 ( (2) Sales Returns and Allowances 300 Accounts Payable 300 (To record sales returns) Returned Inventory 192 Cost of Goods Sold 192 (To record cost of goods returned) II LA DADA (3) Sales Returns and Allowances 200 Accounts Payable 200 (Adjusting entry for sales returns) Estimated Inventory Returns 128 Cost of Goods Sold 128 (Adjusting entry for cost of goods sold) Indicate the income statement and balance sheet reporting by Splish at March 31, 2020, of the information related to the Barr sales. (List Assets in order of liquidity.) Income Statement (partial) For the Quarter Ended March 31, 2020 , Sales Revenue $ 8500 Less : Sales Returns and Allowances 500 i Net Sales 8000 Cost of Goods Sold 5440 Gross profit $ 2560 Balance Sheet (partial) March 31, 2020 Accounts Receivable $ 8000 Returned Inventory 320 Realized Gross Profit 2560