1.Journal Entries:

A) On March 1^st, Krazy Kids purchases $5,000 of inventory from the Merchandise Mart with the terms 2/10, n/30. What is the entry that Krazy Kids will make when they purchase the inventory? Use the Net Method

B) On March 2^nd, Krazy Kids also purchases shoes to sell in the store for $2,000 with an additional 15% sales tax on account. What is the entry that Krazy Kids will make when they purchase the shoes from Merchandise Mart?

C)On March 20^th, Krazy Kids pays the amount due to the Merchandise Mart for both transactions above. What is the journal entry that Krazy Kids would make to record the payment?

D) On March 21^st, Krazy Kids purchases hats from Merchandise Mart on account.The hats cost $1,000 and are sold FOB Shipping point. The seller had already paid the shipping charges of $100, but will add it to the invoice if necessary. What is the entry that Krazy Kids will make when they purchase the hats from Merchandise Mart?

E) Krazy kids has a grand opening sale on April 1^st and sells merchandise to a customer for $1,000 and collects an additional 10% sales tax. The customer pays cash. In looking at the inventory records, the inventory sold had a cost of $200. What is the journal entry that Krazy Kids would make to record the sale?

F)What is the Gross Profit that Krazy Kids earned on the first sale they made on April 1^st?