Cycle Wholesaling sold merchandise on account, with terms n/60, to Sarah's Cycles on February 1 for $450 (cost of goods sold of $320). On February 9, Sarah's Cycles returned to Cycle Wholesaling one-quarter of the merchandise from February 1 (cost of goods returned was $80). Cycle Wholesaling uses a perpetual inventory system, and it allows returns only within 15 days of initial sale. Required: 1. to 3. Prepare the journal entries to record the sale on February 1, goods returned on February 9, and cash collected on March 2. 4. Calculate the gross profit percentage for the sale to Sarah's Cycles.
Cycle Wholesaling sold merchandise on account, with terms n/60, to Sarah's Cycles on February 1 for $450 (cost of goods sold of $320). On February 9, Sarah's Cycles returned to Cycle Wholesaling one-quarter of the merchandise from February 1 (cost of goods returned was $80). Cycle Wholesaling uses a perpetual inventory system, and it allows returns only within 15 days of initial sale. Required: 1. to 3. Prepare the journal entries to record the sale on February 1, goods returned on February 9, and cash collected on March 2. 4. Calculate the gross profit percentage for the sale to Sarah's Cycles.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Subject : Accounting
Transcribed Image Text:Journal entry worksheet
1
2
Date
February 01
3
Note: Enter debits before credits.
Record entry
Record the sales on account of $450 with terms n/60.
4
5
General Journal
Clear entry
Debit
Credit
View general journal
>
Transcribed Image Text:Cycle Wholesaling sold merchandise on account, with terms n/60, to Sarah's Cycles on February 1 for $450 (cost of goods sold of
$320). On February 9, Sarah's Cycles returned to Cycle Wholesaling one-quarter of the merchandise from February 1 (cost of goods
returned was $80). Cycle Wholesaling uses a perpetual inventory system, and it allows returns only within 15 days of initial sale.
Required:
1. to 3. Prepare the journal entries to record the sale on February 1, goods returned on February 9, and cash collected on March 2.
4. Calculate the gross profit percentage for the sale to Sarah's Cycles.
Complete this question by entering your answers in the tabs below.
Req 1 to 3
Req 4
Prepare the journal entries to record the sale on February 1, goods returned on February 9, and cash collected on March 2. (If no entry is
required for a transaction/event, select "No Journal Entry Required" in the first account field.)
View transaction list
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