90.2K

Verified Solution

Link Copied!

Required information CP6-3 (Algo) Recording Cash Sales, Credit Sales, Estimated and Actual 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.] Reyes Books, is a student co-op. Reyes Books uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $171,670 ). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cas refund (original cost of merchandise $656 ). c. Sold merchandise (costing $10,260 ) 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. I f. Anticipate further returns of merchandise (costing \$228) after month-end from sales made durins the month. CP6-3 (Algo) Part 1 Required: 1. Compute Net Sales and Gross Profit for Reyes Books. Required information CP6-3 (Algo) Recording Cash Sales, Credit Sales, Estimated and Actual 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.] Reyes Books, is a student co-op. Reyes Books uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $171,670 ). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cas refund (original cost of merchandise $656 ). c. Sold merchandise (costing $10,260 ) 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. I f. Anticipate further returns of merchandise (costing \$228) after month-end from sales made durins the month. CP6-3 (Algo) Part 1 Required: 1. Compute Net Sales and Gross Profit for Reyes Books

Answer & Explanation Solved by verified expert

See Answer