60.1K

Verified Solution

Link Copied!

CP6-3 Recording Cash Sales, Credit Sales, Sales Returns, and Sales Allowances and Analyzing Gross Profit Percentage (LO 6-4, LO 6-6] (The following information applies to the questions displayed below.) Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $276,700 a. Sold merchandise for cash (cost of merchandise $152,590). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $810). c. Sold merchandise (costing $9,450) to a customer on account with terms n/30. d. Collected half of the balance owed by the customer in (e). e. Granted a partial allowance relating to credit sales the customer in (e) had not yet paid. 1.610 21,000 10,500 1,820 CP6-3 Part 1 Required: 1. Compute Net Sales and Gross Profit for Campus Stop. Net Sales Gross Profit CP6-3 Recording Cash Sales, Credit Sales, Sales Returns, and Sales Allowances and Analyzing Gross Profit Percentage [LO 6-4, LO 6-6) [The following information applies to the questions displayed below.) Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $276,700 .a. Sold merchandise for cash (cost of merchandise $152, 590). b. Received merchandise returned by customers as unsatisfactory (but in perfoot condition) for cash refund (original cost of merchandise $810). c. Sold merchandise (costing $9,450) to a customer on account with terms n/30. d. Collected half of the balance owed by the customer in (e). e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 1,610 21,000 10,500 1,820 CP6-3 Part 2 2. Compute the gross profit percentage (Round your answer to 2 decimal places.) Gross Profit Percentage $276,700 a. Sold merchandise for cash (cost of merchandise $152, 590). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $810). c. Sold merchandise (costing $9,450) to a customer on account with terms 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. 1,610 21,000 10,500 1,820 CP6-3 Part 3 3. Prepare journal entries to record transactions (alle). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 5 6 7 8 Record the cash sales of $276,700. Note: Enter debits before credits. Check my work Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $276,700 a. Sold merchandise for cash (cost of merchandise $152,590). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $810). c. Sold merchandise (costing $9,450) 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 (e) had not yet paid. 1.610 21.000 10,500 CP6-3 Part 4 4. Campus Stop is considering a contract to sell merchandise to a campus organization for $16,000. This merchandise will cost Campus Stop $12,500. Would this contract increase (or decrease) Campus Stop's dollars of gross profit and its gross profit percentage? TIP: The impact on gross profit dollars may differ from the impact on gross profit percentage. (Round "Gross Profit Percentage" to 1 decimal place.) Gross Profit Gross Profit Percentage

Answer & Explanation Solved by verified expert

See Answer