On March 10, 2025, Oriole Company sold to Blue Spruce Hardware 200 tool sets at a price of $47 each (cost $30 per set) with terms of n/60, f.o.b. shipping point. Oriole allows Blue Spruce to return any unused tool sets within 60 days of purchase. Oriole estimates that (1) 10 sets will be returned, (2) the cost of recovering the products will be immaterial, and (3) the returned tools sets can be resold at a profit. On March 25, 2025, Blue Spruce returned 7 tool sets and received a credit to its account. (a) Prepare journal entries for Oriole to record (1) the sale on March 10, 2025, (2) the return on March 25, 2025, and (3) any adjusting entries required on March 31, 2025 (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.) No. (1) ન Date Account Titles and Explanation (To record sales) (2) (To record cost of goods sold) (To record sales returns) (3) (To record cost of goods returned) (Adjusting entry for sales returns) Debit

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter12: Cash Flow Estimation And Risk Analysis
Section: Chapter Questions
Problem 10P: Dauten is offered a replacement machine which has a cost of 8,000, an estimated useful life of 6...
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On March 10, 2025, Oriole Company sold to Blue Spruce Hardware 200 tool sets at a price of $47 each (cost $30 per set) with terms
of n/60, f.o.b. shipping point. Oriole allows Blue Spruce to return any unused tool sets within 60 days of purchase. Oriole estimates
that (1) 10 sets will be returned, (2) the cost of recovering the products will be immaterial, and (3) the returned tools sets can be resold
at a profit. On March 25, 2025, Blue Spruce returned 7 tool sets and received a credit to its account.
(a)
Prepare journal entries for Oriole to record (1) the sale on March 10, 2025, (2) the return on March 25, 2025, and (3) any
adjusting entries required on March 31, 2025 (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.)
No.
(1)
ન
Date
Account Titles and Explanation
(To record sales)
(2)
(To record cost of goods sold)
(To record sales returns)
(3)
(To record cost of goods returned)
(Adjusting entry for sales returns)
Debit
Transcribed Image Text:On March 10, 2025, Oriole Company sold to Blue Spruce Hardware 200 tool sets at a price of $47 each (cost $30 per set) with terms of n/60, f.o.b. shipping point. Oriole allows Blue Spruce to return any unused tool sets within 60 days of purchase. Oriole estimates that (1) 10 sets will be returned, (2) the cost of recovering the products will be immaterial, and (3) the returned tools sets can be resold at a profit. On March 25, 2025, Blue Spruce returned 7 tool sets and received a credit to its account. (a) Prepare journal entries for Oriole to record (1) the sale on March 10, 2025, (2) the return on March 25, 2025, and (3) any adjusting entries required on March 31, 2025 (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.) No. (1) ન Date Account Titles and Explanation (To record sales) (2) (To record cost of goods sold) (To record sales returns) (3) (To record cost of goods returned) (Adjusting entry for sales returns) Debit
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