Answer the following questions assuming that merchandiser uses a perpetual inventory system.

1. Record the purchase of $25,000 of merchandise on account, terms 3/10, n/30, FOB shipping point.

2. Record the payment of $350 for the delivery of the goods purchased in (1).

3. Record the return of merchandise purchased in (1) for credit, $2,000

4. Record the sale of the merchandise on credit for $30,000 (cost $20,000), terms 4/10, n/60, FOB shipping point.

5. Record the payment of $300 for the shipping charges on merchandise sold in (4).

6. Record the return of merchandise sold in (4) which was accepted for full credit and returned to merchandise inventory, $3,000 (cost, $2,000)

7. Record the payment of $300 for shipping charges on merchandise returned by customer in (6).

8. Record the payment in full for the merchandise purchased in (1), less the return in (3) and the purchase discount.

9. Record the receipt of the payment in full from the customer for the sale of merchandise in (4), less the return in (6) and the sales discount.

10. Calculate the net sales, gross profit and gross profit percentage.

Net Sales =

Gross Profit =

Gross Profit Margin =