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(b1) Your answer is partially correct. Indicate the income statement reporting by Oriole at March 31, 2025, of the information related to the Blue Spruce sales transaction. Sales Revenue ORIOLE COMPANY Income Statement (Partial) For the Year Ended March 31, 2025 Less : Sales Returns and Allowances Net Sales Cost of Goods Sold Gross Profit 9400 658 8742 5580 3162 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.

(b1) Your answer is partially correct. Indicate the income statement reporting by Oriole at March 31, 2025, of the information related to the Blue Spruce sales transaction. Sales Revenue ORIOLE COMPANY Income Statement (Partial) For the Year Ended March 31, 2025 Less : Sales Returns and Allowances Net Sales Cost of Goods Sold Gross Profit 9400 658 8742 5580 3162 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(b1) Your answer is partially correct. Indicate the income statement reporting by Oriole at March 31, 2025, of the information related to the Blue Spruce sales transaction. Sales Revenue ORIOLE COMPANY Income Statement (Partial) For the Year Ended March 31, 2025 Less : Sales Returns and Allowances Net Sales Cost of Goods Sold Gross Profit 9400 658 8742 5580 3162
Transcribed Image Text:(b1) Your answer is partially correct. Indicate the income statement reporting by Oriole at March 31, 2025, of the information related to the Blue Spruce sales transaction. Sales Revenue ORIOLE COMPANY Income Statement (Partial) For the Year Ended March 31, 2025 Less : Sales Returns and Allowances Net Sales Cost of Goods Sold Gross Profit 9400 658 8742 5580 3162
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.
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.
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