Milano Company shipped the following merchandise during the last week of December 2022. All sales were on credit.

1. Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of 2022, there were 225 cartridges on hand that cost $62 each. During 2022, Printer Supply purchased 1,475 cartridges at $62 each. After inspection, Printer Supply determined that 15 cartridges were defective and returned them to the supplier. Printer Supply also sold 830 cartridges at $95 each, and sold an additional 710 cartridges at $102 each after a mid-year selling price increase. Customers returned 20 of the cartridges that were purchased at $102 to Printer Supply for various reasons. Assume that Printer Supply uses a perpetual inventory system.

   Required:

   1. Prepare summary journal entries to record the purchases, sales, and return of inventory. Assume that all purchases and sales are on credit but that no discounts were offered.

   Record the entry for the purchases during the year.

   		fill in the blank 80fd7202cfb507b_2
   			fill in the blank 80fd7202cfb507b_4
   	(Purchased inventory on account)

   Record the entry for the return, by Printer Supply, of the cartridges to its supplier.

   		fill in the blank f2e187061f9f065_2
   			fill in the blank f2e187061f9f065_4
   	(Recorded return of defective cartridges to supplier)

   Record the entry for the sales during the year.

   		fill in the blank ad044bf48f9903b_2
   			fill in the blank ad044bf48f9903b_4
   	(Sold inventory on account)

   Record the entry for the cost of goods sold related to the sales during the year.

   		fill in the blank 23f1e1fd3fa3001_2
   			fill in the blank 23f1e1fd3fa3001_4
   	(Recorded cost of inventory sold)

   Record the entry for the return, by customers, of the cartridges to Printer Supply.

   		fill in the blank 8bbfd4ff907b051_2
   			fill in the blank 8bbfd4ff907b051_4
   	(Recorded return of defective cartridges by customers)
   		fill in the blank 8bbfd4ff907b051_6
   			fill in the blank 8bbfd4ff907b051_8
   	(Recorded return of defective cartridges by customers)

   2. What is the cost of ending inventory, cost of goods sold, and gross profit for 2022?

   Cost of ending inventory	$fill in the blank b95e81090063fdf_1
   Cost of goods sold	$fill in the blank b95e81090063fdf_2
   Gross profit	$fill in the blank b95e81090063fdf_3

Required:

1. Compute the total amount of sales revenue recognized by Milano from these transactions. $fill in the blank 1

2. If Milano included all of the above shipments as revenue, what would be the effect on the financial statements? Enter all amounts as positive numbers.

Sales revenue	by	$fill in the blank 3
Net income	by	$fill in the blank 5
Assets (accounts receivable)	by	$fill in the blank 7
Shareholders' equity	by	$fill in the blank 9