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Oriole Wholesalers uses a perpetual inventory system. Mar. Stellar Stores purchases $8,700 of merchandise for resale from Oriole Wholesalers, terms 2/10,n/30, FOB shipping 1 point.

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Oriole Wholesalers uses a perpetual inventory system. Mar. Stellar Stores purchases $8,700 of merchandise for resale from Oriole Wholesalers, terms 2/10,n/30, FOB shipping 1 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. Oriole's cost of the merchandise sold to Stellar was $4,000. 3 Oriole's cost of the merchandise returned by Stellar was $506. As the merchandise was not damaged, it was returned to Oriole's inventory. 21 Oriole's cost of the additional merchandise sold to Stellar Stores was $5,517. 23 Oriole's cost of the merchandise returned by Stellar was $184. As the merchandise was damaged, it was put in the recycling bin. Date Mar, 1 Mar, 1 Accounts Receivable Sales (To record sales on account.) Mar. 1 Cost of Goods Sold Merchandise Inventory (To record cost of goods sold.) Mar. 3. Mar. 3 Mar. 21 Cost of Goods Sold (To record credit for goods returned.) Accounts Receivable Sales (To record cost of goods returned.) Mar.21 Account Titles Debit Credit 8700 \begin{tabular}{|l|l|} \hline & 4000 \\ \hline \end{tabular} 1100 \begin{tabular}{|r|} \hline \\ \hline \end{tabular} Accounts Receivable Merchandise Inventory Sales Returns and Allowances Maris Merchandiselmuentone To record cost of goods sold.) \begin{tabular}{|r|} \hline \\ \hline \\ \hline \\ \hline \end{tabular} on account.) (To record sales on account.) Mar. 21 Accounts Receivable 5517 Sales (To record sales on account.) Mar. 22 Delivery Expense 155 Cash (To record cost of goods sold.) Mar. 23 Sales Returns and Allowances 400 Accounts Receivable Mar. 23 Merchandise Invenffry 184 Cost of Goods Sold Mar. 30 Cash 7600 Accounts Receivable Mar, 31 Cash 11368 Sales Discounts 232 Accounts Receivable Calculate Oriole's net sales, cost of goods sold, and gross profit for these sales. eTextbook and Media

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