Answer all questions. Use the following information to answer questions 1 through 4. The selected accounts and balances for a company appear as follows: Credit Debit $14,000 7,000 10,000 $24.000 140,000 Advertising Expense Freight in Freight Out Expense Interest Income Owners' Capital Owners' Withdrawals Beginning Inventory, January 1 Ending Inventory, December 31 Purchases Purchases Returns & Allowances Rent Expense Sales Sales Discounts Sales Returns and Allowances Wages Expense 21,000 70,000 56,000 60,000 4,000 9,000 150,000 6,000 13,000 32,000 1. What is the amount of net sales on the income statement? 2. What is the lo total of goods available to sell on the income statement? 3. What is the gross profit margin on sales? 4. Assuming that the net cost of purchases was $90,000 during the year, and ending inventory was $2,000 less than the $25,000 beginning inventory, how much was cost of goods sold? 5. A retail furniture store buys sofas from a manufacturer for resale to customers. The manufacturer list price for a sofa is $500. The manufacturer offers a 30% trade discount. The manufacturer's shipping terms are FOB destination. The shipping cost is $50. What is the nel cost to the retailer? 5. A retail furniture store buys sofas from a manufacturer for resale to customers. The manufacturer list price for a sofa is $500. The manufacturer offers a 30% trade discount. The manufacturer's shipping terms are FOB destination. The shipping cost is $50. What is the nel cost to the retailer? The following seven questions (8 through 14) relate to a merchandising company using a perpetual inventory system. Prepare the journal entries OMITTING EXPLANATIONS. 6. July 6 Purchased $1,800 of merchandise on credit with terms of net 30 days. 7. July 8. Returned $300 of the items purchased on July 6. 8. July 9 Paid freight charges of $90 on the items purchased July 6. 9. July 19 Sold merchandise on credit for $3,400, on terms of net 30 days. The merchandise had a cost in inventory of $600. 10. July 22 Of the merchandise sold on July 19, $200 of it was returned. The items had cost the the store $30. 11. July 28 Received payment in full from the customer of July 19. 12. July 31 Paid for the merchandise purchased on July 6