Presented here are selected transactions for Alpine Tours Inc. during September of the current year. Alpine Tours uses a perpetual inventory system. Alpine Tours estimates a return rate of 5% based on past experience. Sept. 2 Purchased equipment on account for $62,800, terms n/30, FOB destination. 3 Freight charges of $980 were paid by the appropriate party on the September 2 purchase of equipment. 4 Purchased supplies for $3,900 cash. 6 Purchased inventory on account from Winterholt Company at a cost of $64,600, terms 1/15, n/30, FOB shipping point. 7 Freight charges of $1,800 were paid by the appropriate party on the September 6 inventory purchase. 8 Returned damaged goods costing $4,900 that were originally purchased from Winterholt Company on September 6. Received a credit on account. 9 Sold goods costing $15,500 to Fischer Limited for $20,200 on account, terms n/30, FOB destination. 10 Freight charges of $410 were paid by the appropriate party on the September 9 sale of inventory. 17 Received the balance due from Fischer. 20 Paid Winterholt Company the balance due. 21 Purchased inventory for $6,400 cash. 22 Sold inventory costing $19,100 to Kun-Tai Inc. for $28,100 on account, terms n/30, FOB shipping point. 23 Freight charges of $400 were paid by the appropriate party on the September 22 sale of inventory. 28 Kun-Tai returned goods sold for $900 that cost $820. The merchandise was restored to inventory. a. Record the September transactions on Alpine Tours’s books. b. Determine Alpine Tours’s sales and cost of goods sold for September. Sales: cost of goods sold: c. Calculate Alpine Tours’s gross profit as a dollar amount and the gross profit margin as a percentage. (Round gross profit margin to 1 decimal place, e.g. 15.2%.) gross profit: gross profit margin:
Presented here are selected transactions for Alpine Tours Inc. during September of the current year. Alpine Tours uses a perpetual inventory system. Alpine Tours estimates a return rate of 5% based on past experience.
Sept. 2 Purchased equipment on account for $62,800, terms n/30, FOB destination. 3 Freight charges of $980 were paid by the appropriate party on the September 2 purchase of equipment. 4 Purchased supplies for $3,900 cash. 6 Purchased inventory on account from Winterholt Company at a cost of $64,600, terms 1/15, n/30, FOB shipping point. 7 Freight charges of $1,800 were paid by the appropriate party on the September 6 inventory purchase. 8 Returned damaged goods costing $4,900 that were originally purchased from Winterholt Company on September 6. Received a credit on account. 9 Sold goods costing $15,500 to Fischer Limited for $20,200 on account, terms n/30, FOB destination. 10 Freight charges of $410 were paid by the appropriate party on the September 9 sale of inventory. 17 Received the balance due from Fischer. 20 Paid Winterholt Company the balance due. 21 Purchased inventory for $6,400 cash. 22 Sold inventory costing $19,100 to Kun-Tai Inc. for $28,100 on account, terms n/30, FOB shipping point. 23 Freight charges of $400 were paid by the appropriate party on the September 22 sale of inventory. 28 Kun-Tai returned goods sold for $900 that cost $820. The merchandise was restored to inventory.
a. Record the September transactions on Alpine Tours’s books.
b. Determine Alpine Tours’s sales and cost of goods sold for September.
Sales:
cost of goods sold:
c. Calculate Alpine Tours’s gross profit as a dollar amount and the gross profit margin as a percentage. (Round gross profit margin to 1 decimal place, e.g. 15.2%.)
gross profit:
gross profit margin:
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