The Kvam Lawn Mower Store sells one type of lawn mower at a price of $200 per unit.

On June I, it had an $800 accounts receivable balance and a $600 accounts payable balance, as well as an inventory of 10 mowers costing $120 each. During June, its purchases and sales of mowers were as follows:

Purchases Sales June 8 5 mowers @ $125 each 15 | | mowers 2 6 mowers @ $121 each 26 4 mowers @ $124 each 30 8 mowers All purchases and sales were on credit. No payments or collections were made during June. The company has a perpetual inventory system and uses “bar codes” to verify each sale. For the sales on June 15, 8 were mowers from the beginning inventory, and 3 were mowers purchased on June 8. For the sales on June 30, 2 were mowers from the beginning inventory, 5 were mowers purchased on June 21,and | was a mower purchased on June 26.
Required: (1) Record the beginning balances in the Accounts Receivable, Inventory, and Accounts Payable T-accounts. Using T-accounts, record the purchases and sales transactions during June and compute the ending balances of all the accounts you used.
(2) Assume that the company counted its inventory at the close of business on June 30 and determined that it had 6 mowers in stock. Prove that the ending balance in the Inventory account that you computed in (I) is correct.
(3) Compute the company’s gross profit percentage for June. How does this compare with its gross profit percentage of 40.8% for May? What might account for the difference?  TK-1