E$6-14($Static$)$ Analyzing and Recording Sales and Gross Profit with Sales Returns $[$LO $6-4,$ LO $6-6]$

Cycle Wholesaling sold merchandise 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 was $$125).$ 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 $2.$

Note: If no entry is required for a transaction or event, select $"$No Journal Entry Required" in the first account field.

Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

Record the sales on account of $$800$ with terms $\frac{n}{60}.$

Note: Enter debits before credits.