Oriole Wholesalers uses a perpetual inventory system. Mar. 1 Stellar Stores purchases $8,700 of merchandise for...

 

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Oriole Wholesalers uses a perpetual inventory system. Mar. 1 Stellar Stores purchases $8,700 of merchandise for resale from Oriole Wholesalers terms 2/10, n/30, FOB shipping point. 2 The correct company pays $140 for the shipping charges. 3 Stellar returns $1,100 of the merchandise purchased on March 1 because it was the wrong colour. Oriole gives Stellar a $1,100 credit on its account. 21 Stellar Stores purchases an additional $12,000 of merchandise for resale from Oriole Wholesalers terms 2/10, n/30, FOB destination. 22 The correct company pays $155 for freight charges. 23 Stellar returns $400 of the merchandise purchased on March 21 because it was damaged. Oriole gives Stellar a $400 credit on its account. 30 Stellar paid Oriole the amount owing for the merchandise purchased on March 1. 31 Stellar paid Oriole the amount owing for the merchandise purchased on March 21. Additional information: Mar. 1 Oriole's cost of the merchandise sold to Stellar was $4,000. 3 Oriole's cost of the merchandise returned by Stellar was $440. As the merchandise was not damaged, it was returned to Oriole's inventory. Oriole's cost of the additional merchandise sold to Stellar Stores was $5,700. 21 23 Oriole's cost of the merchandise returned by Stellar was $172. As the merchandise was damaged, it was put in the recycling bin. Prepare Oriole Wholesalers' journal entries to record the sale transactions with Stellar. Remember to record the freight and cash receipt transactions as appropriate. (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 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation V (To record sales) (To record cost) (To record credit granted for returned goods) Debit Credit (To record the cost of return) (To record sales) (To record cost) (To record the return) Mar. 31 the (To record the cost of the return) Oriole Wholesalers uses a perpetual inventory system. Mar. 1 Stellar Stores purchases $8,700 of merchandise for resale from Oriole Wholesalers terms 2/10, n/30, FOB shipping point. 2 The correct company pays $140 for the shipping charges. 3 Stellar returns $1,100 of the merchandise purchased on March 1 because it was the wrong colour. Oriole gives Stellar a $1,100 credit on its account. 21 Stellar Stores purchases an additional $12,000 of merchandise for resale from Oriole Wholesalers terms 2/10, n/30, FOB destination. 22 The correct company pays $155 for freight charges. 23 Stellar returns $400 of the merchandise purchased on March 21 because it was damaged. Oriole gives Stellar a $400 credit on its account. 30 Stellar paid Oriole the amount owing for the merchandise purchased on March 1. 31 Stellar paid Oriole the amount owing for the merchandise purchased on March 21. Additional information: Mar. 1 Oriole's cost of the merchandise sold to Stellar was $4,000. 3 Oriole's cost of the merchandise returned by Stellar was $440. As the merchandise was not damaged, it was returned to Oriole's inventory. Oriole's cost of the additional merchandise sold to Stellar Stores was $5,700. 21 23 Oriole's cost of the merchandise returned by Stellar was $172. As the merchandise was damaged, it was put in the recycling bin. Prepare Oriole Wholesalers' journal entries to record the sale transactions with Stellar. Remember to record the freight and cash receipt transactions as appropriate. (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 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation V (To record sales) (To record cost) (To record credit granted for returned goods) Debit Credit (To record the cost of return) (To record sales) (To record cost) (To record the return) Mar. 31 the (To record the cost of the return)

Answer rating: 100% (QA)

Sale value Cost of goods sold Date of sale Shipping charges paid by oriole Value of sales return Cos... View the full answer