E6-13 (Algo) Determining the Effects of Credit Sales, Sales Discounts, and Sales Returns and Allowances on the Income Statement [LO 6-4, LO 6.6] Complete the following table, indicating the amount and direction of effect of each transaction on each item in Rockland Shoe Company's income statement Be sure to compute the total effects in the final column. Rockland allows returns within only two weeks of the initial sale. (Enter any decreases to account balances with a minus sign.) July 12 Rockland sold merchandise to Kristina Zee at its factory store. Kristina paid for the $355 purchase in cash. The goods cost Rockland $205. July 15 Sold merchandise to Shoe Express at a selling price of $8,500, with terms n/30. Rockland's cost was $4,500. July 23 shoe Express returned $2,10 of the shoes purchased July 15 . The returned shoes were in perfect condition and had cost Rockland $1,15e. July 31 Shoe Express paid the balance owing after the events on July 15 and 23 . E6-14 (Algo) 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 $500 (cost of goods sold of $340 ) On February 9, Sarah's Cycles returned to Cycle Wholesaling one-quarter of the merchandise from February 1 (cost of goods returned was $85 ). Cycle. Wholesaling uses a perpetual inventory system, and it allows returns only within 15 days of initial sale. Required: 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 4. Calculate the gross profit percentage for the sale to Sarah's Cycles