help correct this time On March 10, 2025, Crane Company sold to Windsor Hardware 220 tool sets at a price of $50 each (cost $32 per set) with terms ofn/60, f.o.b. shipping point. Crane allows Windsor to return any unused tool sets within 60 days of purchase. Crane 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 aprofit. On March 25, 2025, Windsor returned 7 tool sets and received a credit to its account. Assume that instead of selling the toolsets on credit, that Crane sold them for cash.(a)Your AnswerPrepare journal entries for Crane to record (1) the sale on March 10, 2025, (2) the return on March 25, 2025, and (3) any adjustingentries required on March 31, 2025 (when Crane prepares financial statements). Crane believes the original estimate of returns iscorrect. (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.)Dateh 10, 2025Correct Answer (Used)ch 10, 2025Account Titles and ExplanationCashSales Revenue(To record cash sales)Cost of Goods SoldInventory(To record cost of goods sold)Debit11.0007,040Credit11.0007,040h 25, 2025 vh 25, 2025h 31, 2025h 31, 2025Sales Returns and AllowancesAccounts Payable(To record sales returns)Returned InventoryCost of Goods Sold(To record cost of goods returned)Sales Returns and AllowancesAccounts Payable(Adjusting entry for sales returns)Estimated Inventory ReturnsCost of Goods Sold(Adjusting entry for cost of goods sold)3502241509635022415096 (b1)Your Answer Correct Answer (Used)Indicate the income statement reporting by Crane at March 31, 2025, of the information related to the Windsor sales.Sales RevenueLess : Sales Returns and AllowancesNet SalesCost of Goods SoldCRANE COMPANYIncome Statement (Partial)For the Quarter Ended March 31, 2025Gross Profit$11,00050010,5006,7203,780(b2)Your answer is partially correct.Indicate the balance sheet reporting by Crane at March 31, 2025, of the information related to the Windsor sales.CashEstimated Inventory ReturnseTextbook and MediaCRANE COMPANYBalance Sheet (Partial)March 31, 2025List of Accounts10500320

Name: help correct this time On March 10, 2025, Crane Company sold to Windso
Uploaded: 2024-03-05T11:50:36.000Z
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Description: help correct this time On March 10, 2025, Crane Company sold to Windsor Hardware 220 tool sets at a price of $50 each (cost $32 per set) with terms ofn/60, f.o.b. shipping point. Crane allows Windsor to return any unused tool sets within 60 days of p