Chic Interiors reported the following transactions in November 2020):

{Requirements}
1. Record the transactions for the month of November assuming the periodic inventory system is used.
2. Prepare a partial income statement through gross profit for the month ending November \(30,2020\).
3. Assume it is the company's year-end. Prepare the end-of-period entries to update inventory and record cost of goods sold.
4. Assume last month's gross profit percentage was \(48 \%\). Has this improved or declined in November? What likely accounts for this change?

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Nov 3 Sold merchandise on account to Ella Barron, $1,500, terms 1/10, n/30. 5 Sold merchandise on account to Amanda O'Connor, $2,500, terms 2/10, n30. 8 Bought $1,500 of merchandise inventory on account. Paid $150 for the freight fee on the inventory. 10 Collected payment from Ella Barron for the November 3 sale. 13 Amanda O'Connor returned $500 of the merchandise bought on November 5. 14 Collected payment from Amanda O'Connor for the balance of the November 5 sale. 15 Returned $50 of inventory that was defective from the November 8 purchase. 26 Paid the account payable from the November 8 purchase. 30 Physical count indicated that Chic Interiors had $250 in ending inventory. The balance in beginning inventory is $400.