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On March 10, 2020, Sweet Company sold to Barr Hardware 200 tool sets at a price of $47 each ( cost $30 per set) with termis of n/60, tab. shipping point. Sweet allows Barr to return any unused tool sets within 60 days of purchase. Sweet 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 profi. On March 25.2020, Barr returned 7 tool sets and received a credit to its account. Assume that instead of selling the tool sets on credit. that Sweet sold them for cash. (a) Prepare journal entries for Sweet to record (1) the sale on March 10, 2020, (2) the return on Marck, 25, 2020, and (3) any adjusting entries required on March 31, 2020 (when Sweet prepares financial statements). Sweet believes the original estimate of returns is correct. (Credit account titleshare outomatically 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 omounts.) Ifventory (To record cost of goods sold) (2) Sales Returns and Allowances Accounts Receivable (To record sales returns) Returned Inventory Cost of Goods Sold (To record cost of goods returned) (3) Sales Returns and Allowances Allobwance for 5 ales Returns and Alowances (Adjusting entry for sales returns) Cost ol Coods Sald (Adjusting entry for cost of goods sold) Indicate the income statement and balance sheet reporting by Sweet at March 31,2020, of the information related to the Barr sales. (List Assets in order of liquidity)

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