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The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 7 Swifty Ltd. sold goods to Blue Spruce Corp. for $55,700, terms n/15, FOB shipping point. The inventory had cost Swifty $29,500. Swifty's management expected a return rate of 3% based on prior experience. Shipping costs of $740 were paid by the appropriate company. Blue Spruce returned unwanted merchandise to Swifty. The returned merchandise has a sales price of $1,720, and a cost of $940. It was restored to inventory. Swifty received the balance due from Blue Spruce. 8 11 Record the above transactions in the books of Swifty. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Round answers to the nearest whole dollar, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Dec. 3 Accounts Receivable 55700 Sales 54029 Refund Liability 1671 (To record credit sale) Dec 3 Cost of Goods Sold 28615 Estimated Inventory Returns 885 Inventory 29500 (To record cost of merchandise sold) Dec. 7 No Entry 0 No Entry 0 Dec. 8 Refund Liability 1720 Accounts Receivable 1720 (To record return of goods) Dec. 8 Inventory 940 Estimated Inventory Returns 940 (lo record cost of merchandise returned) Dec. 11 Cash 53980 Accounts Receivable 53980 Record the above transactions in the books of Blue Spruce. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Round answers to the nearest whole dollar, e.g. 5,275.) Date Debit Credit Account Titles and Explanation Inventory Dec. 3 55700 Accounts Payable 55700 Dec. 7 Inventory 740 Cash 740 Dec. 8 V Accounts Payable 1720 Inventory 1720 Dec. 11 Accounts Payable 53980 Cash 53980 (c) X Your answer is incorrect. Calculate the gross profit earned by Swifty on the above transactions. Gross Profit $ LA 25469

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