Recording Cash Sales, Credit Sales, Sales Discounts, Sales Returns, and Sales Allowances and Analyzing Gross Profit Percentage
Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:
a. Sold merchandise for cash (cost of merchandise $145,950). $ 261,800
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $710). 1,660
c. Sold merchandise (costing $6,300) to a customer on account with terms 2/10, n/30. 14,000
d. Collected half of the balance owed by the customer in (c) within the discount period. 6,860
e. Granted a partial allowance relating to credit sales that the customer in (c) had not yet paid. 1,680
1. Compute Sales Revenue, Net Sales, and Gross Profit for Campus Stop.
Compute the gross profit percentage. (Round your answer to 2 decimal places.) Prepare journal entries to record transactions (a)-(e
Record the cash sales of $261,800.
Record the cost of goods sold of $145,950.
Record the return by a customer of unsatisfactory merchandise that was in perfect condition. A cash refund of $1,660 was given to the customer.