Treno Industries sells to wholesalers. Customers must pay within 15 days or at the point of sale using a credit card. Treno’s cost of goods sold is 40% of sales. The company had the following selected transactions during March:

Requirements

1. Record Treno’s transactions, including the cost of goods sold entry for each sale.

2. Calculate the gross sales revenue for the month.

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March Sold $15,000 of merchandise to Whittier Company on account. Sold $2,000 of merchandise to Yeller Corp., who paid by credit card. The credit card company charges Treno a fee of 2% on credit card sales. Whittier Company returned $500 of the merchandise from March 3. Sold $600 of merchandise to Madison, Inc., on account. Whittier Company paid the balance of what it owed for the purchase on March 3. Sold $22,000 of merchandise to Zucca Co. on account. Zucca reported that some of the merchandise received was scratched and returned $1,000 worth of merchandise to Treno. Sold $32,000 of merchandise to Nichols Co. on account. Zucca paid the balance of what it owed for the purchase on March 19. Treno made the adjusting entries for the month to accrue for estimated future returns. 3 March 4 March 5 March 7 March 15 March 19 March 21 March 23 March 25 March 31 Treno estimates that 5% of total sales will be returned.