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On March 10, 2025, Carla Vista Company sold to Vaughn Hardware 220 tool sets at a price of $55 each (cost $29 per set) with
On March 10, 2025, Carla Vista Company sold to Vaughn Hardware 220 tool sets at a price of $55 each (cost $29 per set) with terms of n/ 60 , fo.b. shipping point. Carla Vista allows Vaughn to return any unused tool sets within 60 days of purchase. Carla Vista 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, Vaughn returned 7 tool sets and received a credit to its account. Prepare journal entries for Carla Vista 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 Carla Vista prepares financial statements). Carla Vista 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. List all debit entries before credit entries.) No. (1) (2) (3) (Aujusung entry Ior sdles returls) Indicate the income statement reporting by Carla Vista at March 31,2025, of the information related to the Vaughn sales transaction. CARLA VISTA COMPANY Income Statement (Partial) $ $ eTextbook and Media List of Accounts Indicate the balance sheet reporting by Carla Vista at March 31,2025, of the information related to the Vaughn sales transaction
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