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On March 1 0 , 2 0 2 5 , Oriole Company sold to Blue Spruce Hardware 2 0 0 tool sets at a price
On March Oriole Company sold to Blue Spruce Hardware tool sets at a price of $ each cost $ per set with terms of fob shipping point. Oriole allows Blue Spruce to return any unused tool sets within days of purchase. Oriole estimates that sets will be returned, the cost of recovering the products will be immaterial, and the returned tools sets can be resold at a profit. On March Blue Spruce returned tool sets and received a credit to its account.
a
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Prepare journal entries for Oriole to record the sale on March the return on March and any adjusting entries required on March when Oriole prepares financial statements Oriole believes the original estimate of returns is correct. 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 O for the amounts. List all debit entries before credit entries.
Jate
Account Titles and Explanation
Accounts Receivable
Sales Revenue
To record sales
Debit
Credit
Credit
To record cost of goods sold
To record sales returns
To record cost of goods returned
Adjusting entry for sales returns
Estimated Inventory Returns
Adjusting entry for cost of goods sold
b
Indicate the income statement reporting by Oriole at March of the information related to the Blue Spruce sales transaction.
ORIOLE COMPANY Income Statement Partial
March
$
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