Consider the following perpetual system merchandising transactions of Belton Company. Use a separate account for each receivable and payable; for example, record the sale on June 1 in Accounts ReceivableAvery & Wiest.

June	1	Sold merchandise to Avery & Wiest for $9,950; terms 2/5, n/15, FOB destination (cost of sales $7,100).
	2	Purchased $5,350 of merchandise from Angolac Suppliers; terms 2/10, n/20, FOB shipping point.
	4	Purchased merchandise inventory from Bastille Sales for $12,300; terms 1/15, n/45, FOB Bastille Sales.
	5	Sold merchandise to Gelgar for $11,900; terms 2/5, n/15, FOB destination (cost of sales $8,150).
	6	Collected the amount owing from Avery & Wiest regarding the June 1 sale.
	12	Paid Angolac Suppliers for the June 2 purchase.
	20	Collected the amount owing from Gelgar regarding the June 5 sale.
	30	Paid Bastille Sales for the June 4 purchase.

Prepare General Journal entries to record the above transactions.

Part 2: Based on the information provided above, calculate the following: a. Calculate Net sales.

b. Calculate Cost of goods sold.

c. Calculate Gross profit from sales.

Explanation

Part 1: 6th June: Sales discounts: $9,950 2% = $199 12th June: Merchandise inventory: $5,350 2% = $107 Part 2: a. Net sales = $21,651 ($9,950 + $11,900 $199) b. Cost of goods sold = $15,250 ($7,100 + $8,150) c. Gross profit from sales = $6,401 ($21,651 $15,250)