Prepare journal entries for Buffalo to record (1) the sale on March 10, 2020, (2) the return on March 25, 2020, and (3) any adjusting entries required on March 31, 2020 (when Buffalo prepares financial statements). Buffalo believes the original estimate of returns is correct.

1) Debit Account Receivable/Bank Account - Sales Amount

Credit Sales Account - Sales amount

Credit Inventory Account - Cost of the product

Debit Cost of Sales - Cost of the product

2) Debit Sales Account - Sales Amount

Credit Cost of Sales - cost of the product

Credit Account Receivable / Bank - Refund Amount

Debit Inventory Account - Cost of the product

3)

a) Any increase in returns over estimate

Debit Sales Account - Difference in sales Value

Credit Cost of Sales - Difference in cost of the product

Credit Account Receivable / Bank - Difference Refund Amount

Debit Inventory Account - Difference in Cost of the product

b) Any Decrease in returns over estimate

Debit Sales Account - Decrease in Sales Amount

Credit Cost of Sales - Decrease in cost of the product

Credit Account Receivable / Bank - Decrease in refund Amount

Debit Inventory Account - Decrease Cost of the product