Cycle Wholesaling sold merchandise on account, with terms n/60, to Sarahs Cycles on February 1 for $800 (cost of goods sold of $500). On February 9, Sarahs Cycles returned to Cycle Wholesaling one-quarter of the merchandise from February 1 (cost of goods returned was $125). Cycle Wholesaling uses a perpetual inventory system, and it allows returns only within 15 days of initial sale.

Cycle Wholesallng sold merchandlse on account, with terms n/60, to Sarah's Cycles on February 1 for $800 (cost of goods sold of $500). On February 9, Sarah's Cycles returned to Cycle Wholesaling one-quarter of the merchandise from February 1 (cost of goods returned wes $125). Cycle Wholesallng uses a perpetual Inventory system, and it allows returns only within 15 days of Initial sale. Required: 1. to 3. Prepare the Journal entry to record the sales, Goods returned on February 9 and Cash collected on March 2. 4. 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 Reg4 Prepare the journal entry to record the sales, Goods returned on February 9 and Cash collected on March 2. (If no entry is required for a transaction/event, select "No Jounal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the Goods returned by Sarah's Cycles on February 9 at $200. Note: Enter debits before credits. Date General Journal Debilt Credit February 09 Record entry Clear ontry View general journal