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Chino Fruit Wholesalers had gross sales of $340,000 on credit during the month of March. Sales returns and allowances were $54,000. Cash discounts granted were $38,000 and were accounted for using the gross method. Requirement 1. Prepare an analysis of the impact of these transactions on the balance sheet equation. Also show the journal entries. Prepare a detailed presentation of the revenue section of the income statement. Assume the appropriate amount of receivables was collected. + By using the balance sheet equation framework, analyze the impact of the three transactions for Chino Fruit Wholesalers in the order given. Had gross sales of $840,000 on credit during the month of March. Sales retums and allowances were $54,000. Cash discounts granted were $36,000 and were accounted for using the gross method. (Use a minus sign or parentheses to show a decrease in the balance sheet equation component and leave any unused cells blank.) Assets Liabilities Stockholder's Equity Accounts Accounts Sales retums Cash discounts Cash receivable payable Sales and allowances on sales + + + + Let's show the journal entry for the gross sales of $840,000 on credit during the month of March. (Record debits first, then credits. Explanations are not required.) Date Accounts Debit Credit March Next, show the journal entry for the sales returns and allowances that amounted to $54,000. Date Accounts Debit Credit March Now let's show the journal entry for the cash discounts of $36,000 that were granted and accounted for using the gross method. Date Accounts Debit Credit March Prepare a detailed presentation of the revenue section of the income statement. Assume the appropriate amount of receivables was collected. (Leave any unused cells blank.) Deduct: MI Net sales

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