Fresno Fruit Wholesalers had gross sales of $850,000 on credit during the month of March. Sales returns

Question:

Fresno Fruit Wholesalers had gross sales of $850,000 on credit during the month of March. Sales returns and allowances were $50,000. Cash discounts granted were $35,000 and were accounted for using the gross method.

Prepare an analysis of the impact of these transactions on the balance sheet equation. Also show the journal entries. Prepare a detailed presentation of the revenue section of the income statement. Assume the appropriate amount of receivables was collected.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...