8.

E6-14 (Algo) Analyzing and Recording Sales and Gross Profit with Sales Returns [LO 6-4, LO 6-6]

Cycle Wholesaling sold merchandise on account, with terms n/60, to Sarahs Cycles on February 1 for $700 (cost of goods sold of $460). On February 9, Sarahs Cycles returned to Cycle Wholesaling one-quarter of the merchandise from February 1 (cost of goods returned was $115). Cycle Wholesaling uses a perpetual inventory system, and it allows returns only within 15 days of initial sale.

E6-14 (Algo) Analyzing and Recording Sales and Gross Profit with Sales Returns (LO 6-4, LO 6-6) Cycle Wholesaling sold merchandise on account, with terms n/60, to Sarah's Cycles on February 1 for $700 (cost of goods sold of $460). On February 9, Sarah's Cycles returned to Cycle Wholesaling one-quarter of the merchandise from February 1 (cost of goods returned was $115). Cycle Wholesaling uses a perpetual inventory system, and it allows returns only within 15 days of initial sale. Required: 1. to 3. Prepare the journal entries to record the sale on February 1, goods returned on February 9, and cash collected on March 2. 4. Calculate the gross profit percentage for the sale to Sarah's Cycles. Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Prepare the journal entries to record the sale on February 1, goods returned on February 9, and cash collected on March 2. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list X 1 Record the sales on account of $700 with terms n/60. 2 Record the cost of goods sold of $460. 3 Record the sales returned of $175. 4 Record the cost of the sales returned of $115. 5 Record receipt of payment for sales on account. Credit Note : - journal entry has been entered Record entry Clear entry View general journal Req 1 to 3 Req 4 Calculate the gross profit percentage for the sale to Sarah's Cycles. (Round your answer to 1 decimal place.) Gross Profit Percentage %