(Solved): Required Information PB6-3 Recording Sales And Purchases With Discounts And Returns And Analyzing Gr ...
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 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 $1,900). C. Sold merchandise (costing $3,000) to a customer on account with term n/30. d. Collected half of the balance owed by the customer in (c). e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 3.000 5,000 2.500
PB6-3 Part 1 Required: 1. Compute Net Sales and Gross Profit for LBS. Net Sales Gross Profit
PB6-3 Part 2 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.) Gross Profit Percentage
Required information 1 Record the cash sales of $500,000. 2 Record the cost of goods sold of $224,350. 3 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. Credit 4 Record the merchandise returned by the customer back into inventory. The original cost of the merchandise was $1,900. 5 Record the sales on account of $5,000 on terms n/30. 6 Record the cost of goods sold of $3,000. Note : = journal entry has been entered Record entry Clear entry View general journa
7 Record the collection of half of the balance of $2,500 owed by the customer within the discount period. 8 Record the allowance of $950 granted to the customer.
PB6-3 Part 4 4. LBS is considering a contract to sell building supplies to a local home builder for $20,000. These materials will cost LBS $16,000. Would this contract increase (or decrease) LBS's dollars of gross profit and its gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) Gross Pront Gross Proth Porcentage