Oriole Wholesalers uses a perpetual inventory system.

Mar.

$1$

$-/3$

:

$21$

$22$

$23$

$30$

$31$

Stellar Stores purchases $$8,700$ of merchandise for resale from Oriole Wholesalers, terms $2/10,$ n$/30,$ FOB shipping point.

The correct company pays $$140$ for the shipping charges.

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.

Stellar Stores purchases an additional $$12,000$ of merchandise for resale from Oriole Wholesalers, terms $2/10,$ n$/30,$ FOB destination.

The correct company pays $$155$ for freight charges.

Stellar returns $$400$ of the merchandise purchased on March $21$ because it was damaged. Oriole gives Stellar a $$400$

credit on its account.

Stellar paid Oriole the amount owing for the merchandise purchased on March $1.$

Stellar paid Oriole the amount owing for the merchandise purchased on March $21.$

Additional information:

Mar.

$21$

$23$

Oriole's cost of the merchandise sold to Stellar was $$4,000.$

Oriole's cost of the merchandise returned by Stellar was $$506.$ 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 $$5,517.$

Oriole's cost of the merchandise returned by Stellar was $$184.$ As the merchandise was damaged, it was put in the recycling bin. Prepare Oriole Wholesalers journal entries to record the sales transactions with Stellar. Remember to record the freight and cash receipt transactions as appropriate.eTextbook and Media

List of Accounts

Calculate Oriole's net sales, cost of goods sold, and gross profit for these sales.

Net sales

$

Cost of goods sold

$

Gross profit

$

eTextbook and Media

List of Accounts