On March 10, 2025, Crane Company sold to Waterway Hardware 210 tool sets at a price of $45 each (cost $29 per set) with terms of n/60, f.o.b. shipping point. Crane allows Waterway 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, 2025, Waterway returned 5 tool sets and received a credit to its account. (a) -Your answer is partially correct. Prepare journal entries for Crane 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 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. List all debit entries before credit entries.) e Account Titles and Explanation 2025 Accounts Receivable Sales Revenue (To record sales) 2025 Cost of Goods Sold Inventory (To record cost of goods sold) 2025 Sales Returns and Allowances Accounts Receivable Debit 9450 6090 225 Credit 9450 6090 225 2025 2025 Returned Inventory Cost of Goods Sold (To record cost of goods returned) Accounts Receivable Sales Returns and Allowances (Adjusting entry for sales returns) 2025 Cost of Goods Sold Returned Inventory (Adjusting entry for cost of goods sold) 145 225 145 145 225 145 Indicate the income statement reporting by Crane at March 31, 2025, of the information related to the Waterway sales transaction. Sales Revenue CRANE COMPANY Income Statement (Partial) For the Quarter Ended March 31, 2025 Less Sales Returns and Allowances Net Sales Cost of Goods Sold Gross Profit SA +A $ 9450 450 i 9000 5800 i 3200 Indicate the balance sheet reporting by Crane at March 31, 2025, of the information related to the Waterway sales transaction. CRANE COMPANY Balance Sheet (Partial) March 31, 2025 Accounts Receivable Returned Inventory Estimated Inventory Returns +A 9000 225 225