Answer:
1) the sale on March 10, 2020
Dr.Accounts Receivable (200 x 50)...10,000
Cr. Sales..............................................................10,000
2) the return on March 25, 2020
Dr. Sales Returns (200 x 6).....1,200
Cr. Accounts Receivables...................1,200
Explanation:
On March 10, 2017, Steele Company sold to Barr Hardware 200 tool sets at a price of $50 each (cost $30 per set) with terms of n/60, f.o.b. shipping point. Steele allows Barr to return any unused tool sets within 60 days of purchase. Steele 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, 2017, Barr returned 6 tool sets and received a credit to its account.
1) the sale on March 10, 2020
Dr.Accounts Receivable (200 x 50)...10,000
Cr. Sales..............................................................10,000
2) the return on March 25, 2020
Dr. Sales Returns (200 x 6).....1,200
Cr. Accounts Receivables...................1,200
3) any adjusting entries required on March 31, 2020 - it means that 10% of 200 pieces sold was returned and we only accounted for 6 so far, leaving 14 pieces.
Dr. Sales Returns (200 x 14)....2,800
Cr. Accounts Receivable............................2,800
