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On March 10, 2025, Sandhill Company sold to Tamarisk Hardware 210 tool sets at a price of $52 each (cost $31 per set) with terms of n/60, f.o.b. shipping point. Sandhill allows Tamarisk to return any unused tool sets within 60 days of purchase. Sandhill 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, Tamarisk returned 7 tool sets and received a credit to its account.
(a)
Prepare journal entries for Sandhill 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 Sandhill prepares financial statements). Sandhill 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.)
No. Date Account Titles and Explanation Debit
(1)
(To record sales)
(To record cost of goods sold)
(2)
