4 | ||
Gross Profit | increases by | 4000 |
Gross Profit Percentage | decrease to | 53.7% |
Workings: | ||
Gross Profit increase | 4000 | =20000-16000 |
Without special contract: | ||
Actual gross sales | 505000 | =500000+5000 |
Less: Returns and allowances | 3950 | =3000+950 |
Net sales | 501050 | |
Net sales | 501050 | |
Less: Cost of goods sold | 225450 | =224350+3000-1900 |
Gross Profit | 275600 | |
Gross Profit Percentage | 55.0% | =275600/501050 |
With special contract: | ||
Net sales | 521050 | =501050+20000 |
Less: Cost of goods sold | 241450 | =225450+16000 |
Gross Profit | 279600 | |
Gross Profit Percentage | 53.7% | =279600/521050 |
Required information PB6-3 Recording Sales and Purchases with Discounts and Returns and Analyzing Gross Profit Percentage...
PB6-3 Recording Sales and Purchases with Discounts and Returns and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5] [The following information applies to the questions displayed below.] Larry's Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $500,000 a. Sold merchandise for cash (cost of merchandise $224,350). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise...
Required information PB6-3 Recording Sales and Purchases with Discounts and Returns and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5) [The following information applies to the questions displayed below.) Larry's Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis $500,000 a. Sold merchandise for cash (cost of merchandise $224,350) b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost...
Larry's Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandi se for cash (cost of merchandi se $224, 350). b. Received merchandi se returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $1, 900). Sold merchandi se (costing $3, 000) to a customer on account with terms n/30. d. Collected half of the balance owed by...
Can you also explain how to get the answers on the Jounral entries. Thank you Larry's Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandi se for cash (cost of merchandi se $224, 350). b. Received merchandi se returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $1, 900). Sold merchandi se (costing $3, 000) to...
Find the net sales and gross profit Required information [The following information applies to the questions displayed below.] Larry's Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $ 755,000 a. Sold merchandise for cash (cost of merchandise $361,350). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) cash refund (original cost of merchandise $5,300). c. Sold merchandise (costing $11,160) to a customer...
Required information CP6-3 Recording Cash Sales, Credit Sales, Sales Returns, and Sales Allowances and Analyzing Gross Profit Percentage [LO 6-4, LO 6-6] [The following information applies to the questions displayed below.] Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $268,900 a. Sold merchandise for cash (cost of merchandise $149, 510). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund...
a)Record the cash sales of $500,000. b)Record the cost of goods sold of $224,350. c)Record the return by a customer of unsatisfactory merchandise that was in perfect condition. A cash refund of $3,000 was given to the customer. d)Record the merchandise returned by the customer back into inventory. The original cost of the merchandise was $1,900. e)Record the sales on account of $5,000 on terms n/30. f)Record the cost of goods sold of $3,000. g)Record the collection of half of...
Required information g Sales with Discounts and Returns and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5] [The following information applies to the questions displayed below. Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $20,797) b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) $35,200 for cash refund (original cost of merchandise...
Required information (The following information applies to the questions displayed below) Larry's Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis $785, eee . Sold merchandise for cash (cost of merchandise $577,350). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $5,708). c. Sold merchandise (costing $12,120) to a customer on account with terms n/30. d....
Required Information [The following information applies to the questions displayed below.) Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $63,200 a. Sold merchandise for cash (cost of merchandise $34,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $450 ). c. Sold merchandise (costing $6,175 ) to a customer on account with terms...