CP6-3 Recording Cash Sales, Credit Sales, Sales Discounts, Sales Returns, and Sales Allowances and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5]

[The following information applies to the questions displayed below.]

Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:

a.	Sold merchandise for cash (cost of merchandise $145,430).	$	260,100
b.	Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $700).		1,650
c.	Sold merchandise (costing $5,850) to a customer on account with terms 2/10, n/30.		13,000
d.	Collected half of the balance owed by the customer in (c) within the discount period.		6,370
e.	Granted a partial allowance relating to credit sales that the customer in (c) had not yet paid.		1,660

References

Section BreakCP6-3 Recording Cash Sales, Credit Sales, Sales Discounts, Sales Returns, and Sales Allowances and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5]

Required:

1.	Compute Sales Revenue, Net Sales, and Gross Profit for Campus Stop.

References

eBook & Resources

WorksheetDifficulty: 2 MediumLearning Objective: 06-05 Prepare and analyze a merchandiser's multistep income statement.

CP6-3 Part 1Learning Objective: 06-04 Analyze sales transactions under a perpetual inventory system.

value: 1.33 points

Required information

CP6-3 Part 2

2.	Compute the gross profit percentage. (Round your answer to 2 decimal places.)

References

eBook & Resources

WorksheetDifficulty: 2 MediumLearning Objective: 06-05 Prepare and analyze a merchandiser's multistep income statement.

CP6-3 Part 2Learning Objective: 06-04 Analyze sales transactions under a perpetual inventory system.

Ask your instructor a questionCheck my work

9.

value: 1.33 points

Required information

CP6-3 Part 3

3.	Prepare journal entries to record transactions (a)(e). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

References

eBook & Resources

General JournalDifficulty: 2 MediumLearning Objective: 06-05 Prepare and analyze a merchandiser's multistep income statement.

CP6-3 Part 3Learning Objective: 06-04 Analyze sales transactions under a perpetual inventory system.

Ask your instructor a questionCheck my work

10.

value: 1.33 points

Required information

CP6-3 Part 4

4.	Campus Stop is considering a contract to sell merchandise to a campus organization for $10,000. This merchandise will cost Campus Stop $9,800. What would be the increase or decrease to Campus Stop's gross profit and gross profit percentage? TIP: The impact on gross profit (a dollar amount) may differ from the impact on gross profit percentage. (Round "Gross Profit Percentage" to 1 decimal place.)