On March $10,2025,$ Cullumber Company sold to Oriole Hardware $200$ tool sets at a price of $\backslash (\backslash$$ $51\backslash )$ each $($cost $\backslash (\backslash$$ $28\backslash )$ per set$)$ with terms of $\backslash (\backslash$mathrm$\{$n$\}/60\backslash ),$ f$.$o$.$b$.$ shipping point. Cullumber allows Oriole to return any unused tool sets within $60$ days of purchase. Cullumber 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 $25,2025,$ Oriole returned $6$ tool sets and received a credit to its account.

$($a$)$

Your answer is partially correct.

Prepare journal entries for Cullumber 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 Cullumber prepares financial statements$).$ Cullumber 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 O for the amounts. List all debit entries before credit entries.$)$

No$.$

Date

Account Titles and Explanation

Debit

$(1)$

Accounts Receivable

Sales Revenue

$($To record sales$)$

$[1$

$\backslash ([\backslash )$

$($To record cost of goods sold$)(2)$

Sales Returns and Allowances

$($To record sales returns$)$

Returned Inventory

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

$(3)$

Sales Returns and Allowances

$($Adjusting entry for sales returns$)$

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

Accounts Receivable

$($To record sales returns$)$

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

Sales Discounts

Sales Returns and Allowances

$($Adjusting entry for sales returns$)$

$($Adjusting entry for cost of goods sold$)($b$1)$

Indicate the income statement reporting by Cullumber at March $31,2025,$ of the information related to the Oriole sales transaction.

CULLUMBER COMPANY

Income Statement $($Partial$)$

$\backslash$$

$\backslash [$

$\backslash$$

$\backslash ]$

eTextbook and Media $($b$2)$

Indicate the balance sheet reporting by Cullumber at March $31,2025,$ of the information related to the Oriole sales transaction.

CULLUMBER COMPANY

Balance Sheet $($Partial$)\backslash$$

eTextbook and Media

List of Accounts

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