Question 7 of 16 - /20 TII View Policies Current Attempt in Progress Crane Wholesalers uses a perpetual inventory system. Mar. 1 2 3 21 Stellar Stores purchases $8.500 of merchandise for resale from Crane Wholesalers, terms 2/10,n/30, FOB shipping point. The correct company pays $175 for the shipping charges. Stellar returns $1,000 of the merchandise purchased on March 1 because it was the wrong colour. Crane gives Stellar a $1.000 credit on its account. Stellar Stores purchases an additional $13,500 of merchandise for resale from Crane Wholesalers, terms 2/10, n/30, FOB destination. The correct company pays $190 for freight charges. Stellar returns $300 of the merchandise purchased on March 21 because it was damaged. Crane gives Stellar a $300 credit on its account. Stellar paid Crane the amount owing for the merchandise purchased on March 1. Stellar paid Crane the amount owing for the merchandise purchased on March 21. 22 23 30 31 Additional information: Mar. Crane's cost of the merchandise sold to Stellar was $4.000. 1 3 21 Crane's cost of the merchandise returned by Stellar was $471. As the merchandise was not damaged, it was returned to Crane's inventory. Crane's cost of the additional merchandise sold to Stellar Stores was $6,353. Crane's cost of the merchandise returned by Stellar was $141. As the merchandise was damaged, it was put in the recycling bin. 23 Prepare Crane Wholesalers' journal entries to record the sales 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 Question 7 of 16 - /20 III Prepare Crane Wholesalers' journal entries to record the sales 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 Ofor the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record sales on account.) (To record cost of goods sold.) (To record credit for goods returned.) (To record cost of goods returned.) Question 7 of 16 - /20 (To record cost of goods returned.) (To record sales on account.) (To record cost of goods sold.) (Cash payment for freight costs.) (To record credit for goods returned.) (Collection on account.) Mar. 31 (Collection on account.) Question 7 of 16 - /20 (Collection on account.) Mar. 31 (Collection on account.) List of Accounts Assistance Used Calculate Crane's net sales, cost of goods sold, and gross profit for these sales. Net sales $ 10,554 Cost of goods sold $ 9.741 Gross profit $ 10.959 List of Accounts Save for Later Last saved 8 minutes ago. Attempts: 0 of 1 used Submit Answer Saved work will be auto-submitted on the due date
