CP6-3 Recording Cash Sales, Credit Sales, Sales Returns, and Sales Allowances and Analyzing Gross Profit...

60.1K

Verified Solution

Question

Accounting

image
image
image
image
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
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students