Analyze ABC Depot The ABC Depot reported the following data (in millions) in its recent financial statements: a. Determine the asset turnover ratio for ABC Depot for Year 2 and Year 1. Round to one decimal place. b. What does an asset turnover ratio indicate? 1. Effectiveness in the use of assets to generate revenue. 2. Effective use of revenue to create assets. 3. Effective use of assets to reduce cost. 4. Effective use of assets to increase assets. 1* Feedback r Check My Work (a) Average Total Assets =( Beginning Total Assets + Ending Total Assets) 2; Divide Sales by Average Total Assets to obtain the ratio. (b) This ratio measures how effectively a business is using its average amount of assets to generate sales. The higher the ratio, the better the effective use of assets. Sales-related transactions After the amount due on a sale of $32,800, terms n/eom, is received from a customer, the seller consents to the return of the entire shipment for a cash refund. The cost of the merchandise returned is $19,680. a. What is the amount of the refund owed to the customer? $ Feedback r Check My Work. (a) The amount of the refund will be the merchandise returned less the discount. b. Journalize the entries made by the seller to record the return and the refund. If an amount box does not require an entry, leave it blank. Feedback Theck My Work (b) Two entries are needed: one for the sales component, discount, and payment and one for the cost of the inventory sold and return of the merchandise to inventory. Using the perpetual inventory system, journalize the entries for the following selected transactions: a. Sold merchandise on account for $12,000, terms n/30. The cost of the goods sold was $6,500. b. Sold merchandise to customers who used MasterCard and VISA, $9,500. The cost of the goods sold was $5,300. c. Sold merchandise to customers who used American Express, $2,900. The cost of the goods sold was $1,700. d. Received and paid an invoice from National Clearing House Credit Co. for $460, representing a service fee for processing MasterCard, VISA, and American Express sales. If an amount box does not require an entry, leave it blank. Journaliat the following merchandest transactions. The compary uses the perpetual inventory system. a. Sold merchandise on account, $17,300, with terms n/aD. The cost of the merchandise sold was \$12,600. If an amount box does not requre an entry, leave it blank. b. Recewed payment, If an ampunt box does not requer an entry, ieave is blank