Date | Account Titles | Debit | Credit |
a | Cash | $ 5,00,000 | |
Sales Revenue | $ 5,00,000 | ||
(Sales made for cash) | |||
Cost of Goods Sold | $ 2,24,350 | ||
Inventory | $ 2,24,350 | ||
(Cost of Goods Sold recorded) | |||
b | Sales returns and allowances | $ 3,000 | |
Cash | $ 3,000 | ||
(Cash refund made for return) | |||
Inventory | $ 1,900 | ||
Cost of Goods Sold | $ 1,900 | ||
(Inventory added back) | |||
c | Accounts Receivable | $ 5,000 | |
Sales Revenue | $ 5,000 | ||
(Sales made on account) | |||
Cost of Goods Sold | $ 3,000 | ||
Inventory | $ 3,000 | ||
(Cost of Goods Sold recorded) | |||
d | Cash | $ 2,500 | |
Accounts Receivable | $ 2,500 | ||
(Collected Cash) | |||
e | Sales returns and allowances | $ 950 | |
Accounts Receivable | $ 950 | ||
(Sales allowance granted) |
Net Sales | $ 5,01,050 | =500000-3000+5000-950 |
Cost of Goods Sold | $ 2,25,450 | =224350-1900+3000 |
Gross Profit | $ 2,75,600 | |
Gross Profit (%) | 55.00% |
4.
Net Sales | $ 5,01,050 | $ 5,21,050 | |
Cost of Goods Sold | $ 2,25,450 | $ 2,41,450 | |
Gross Profit | $ 2,75,600 | $ 2,79,600 | $ 4,000 |
Gross Profit (%) | 55.00% | 53.66% | -1.34% |
Gross Profit increase by $4000
Gross Profit (%) decrease by 1.34%
Required information PB6-3 Recording Sales and Purchases with Discounts and Returns and Analyzing Gross Profit Percentage...
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 erchandise 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...
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...
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 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...
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 [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...
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....