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On March $10,2025,$ Ivanhoe Company sold to Kingbird Hardware $190$ tool sets at a price of $$52$ each $($cost $$32$ per set$)$ with terms of

$\frac{n}{60},$ f$.$o$.$b$.$ shipping point. Ivanhoe allows Kingbird to return any unused tool sets within $60$ days of purchase. Ivanhoe 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 $25,2025,$ Kingbird returned $7$ tool sets and received a credit to its account.

$($a$)$

Your answer is partially correct.

Prepare journal entries for Ivanhoe 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 Ivanhoe prepares financial statements$).$ Ivanhoe 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 $0$ for the amounts. List all debit

entries before credit entries.$)$

$($To record cost of goods sold$)$

$($To record sales returns$)$

$($To record cost of goods returned$)$

Sales Returns Allowances

$($Adjusting entry for sales returns$)$

Estimated Inventory Returns

$($Adjusting entry for cost of goods sold$)$

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