On March 10, 2025, Pharoah Company sold to Bloom Hardware 240 tool sets at a price of $50 each (cost $31 per set) with terms of n/60, f.o.b. shipping point. Pharoah allows Bloom to return any unused tool sets within 60 days of purchase. Pharoah 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, Bloom returned 7 tool sets and received a credit to its account. Assume that instead of selling the tool sets on credit, that Pharoah sold them for cash. Account Titles and Explanation Debit Credit Cash 12,000 Sales Revenue (To record cash sales) Cost of Goods Sold Inventory (To record cost of goods sold) Sales Returns and Allowances \begin{tabular}{|r|} \hline 7,130 \\ \hline \hline \end{tabular} Accounts Payable (To record sales returns) Deferred Gross Profit Deferred Gross Profit (To record cost of goods returned) Accounts Receivable 11,650 Allowance for Sales Returns 150 (Adjusting entry for sales returns) Accounts Receivable 11,500 Returned Inventory (Adjusting entry for cost of goods sold)