Cycle Wholesaling sold merchandise on account, with terms n$/60,$ to Sarah's Cycles on February $1$ for $$1,000($cost of goods sold of

$$640).$ On February $9,$ Sarah's Cycles returned to Cycle Wholesaling one$-$quarter of the merchandise from February $1($cost of goods

returned was $$160).$ Cycle Wholesaling uses a perpetual inventory system, and it allows returns only within $15$ days of initial sale.

Required:

to $3.$ Prepare the journal entries to record the sale on February $1,$ goods returned on February $9,$ and cash collected on March $2.$

Calculate the gross profit percentage for the sale to Sarah's Cycles.

Complete this question by entering your answers in the tabs below.

Req $1$ to $3$

Prepare the journal entries to record the sale on February $1,$ goods returned on February $9,$ and cash collected on March $2.($If no entry is

required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$