Two different companies, Vogel Corporation and Hatcher Corporation, entered into the following inventory transactions during December. Both companies use a perpetual inventory system using the gross method of recording sales discounts. December 3 - Vogel Corporation sold inventory on account to Hatcher Corporation for $240,000, terms 2/10, n/30. This inventory originally cost Vogel $160,000. December 8- Hatcher Corporation returned inventory to Vogel Corporation for a credit of $15,000. Vogel returned this inventory to inventory at its original cost of $10,000. ⚫ December 12 - Hatcher Corporation paid Vogel Corporation for the amount owed. Required: a. Prepare the journal entries to record these transactions on the books of Vogel Corporation. b. What is the amount of net sales to be reported on Vogel Corporation's income statement? c. What is the Vogel Corporation's gross profit percentage? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the Vogel Corporation's gross profit percentage? (Round your answer to the nearest whole percent (i.e., 0.1234 should be entered as 12).)
Two different companies, Vogel Corporation and Hatcher Corporation, entered into the following inventory transactions during December. Both companies use a perpetual inventory system using the gross method of recording sales discounts. December 3 - Vogel Corporation sold inventory on account to Hatcher Corporation for $240,000, terms 2/10, n/30. This inventory originally cost Vogel $160,000. December 8- Hatcher Corporation returned inventory to Vogel Corporation for a credit of $15,000. Vogel returned this inventory to inventory at its original cost of $10,000. ⚫ December 12 - Hatcher Corporation paid Vogel Corporation for the amount owed. Required: a. Prepare the journal entries to record these transactions on the books of Vogel Corporation. b. What is the amount of net sales to be reported on Vogel Corporation's income statement? c. What is the Vogel Corporation's gross profit percentage? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the Vogel Corporation's gross profit percentage? (Round your answer to the nearest whole percent (i.e., 0.1234 should be entered as 12).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Two different companies, Vogel Corporation and Hatcher Corporation, entered into the following inventory transactions during
December. Both companies use a perpetual inventory system using the gross method of recording sales discounts.
December 3 - Vogel Corporation sold inventory on account to Hatcher Corporation for $240,000, terms 2/10, n/30. This inventory
originally cost Vogel $160,000.
December 8- Hatcher Corporation returned inventory to Vogel Corporation for a credit of $15,000. Vogel returned this inventory to
inventory at its original cost of $10,000.
⚫ December 12 - Hatcher Corporation paid Vogel Corporation for the amount owed.
Required:
a. Prepare the journal entries to record these transactions on the books of Vogel Corporation.
b. What is the amount of net sales to be reported on Vogel Corporation's income statement?
c. What is the Vogel Corporation's gross profit percentage?
Complete this question by entering your answers in the tabs below.
Required A
Required B Required C
What is the Vogel Corporation's gross profit percentage? (Round your answer to the nearest whole percent (i.e., 0.1234
should be entered as 12).)
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