E6-14 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 $900 (cost of goods sold of $550). On February 9, Sarah's Cycles returned to Cycle Wholesaling one quarter of the merchandise from February 1 (cost of goods returned was $140). 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 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. Chec Req 1 to 3 Reg1 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 Journal Entry Required in the first account field) View transaction list Journal entry worksheet 1 2 5 > Record the sales made by Cycle Wholesaling on account, with terms w/60, to Sarah's cycles on February 1 for $900. Note: Enter debits before credits General Journal Debit Credit Date February 01 View transaction list Journal entry worksheet search o View transaction list Journal entry worksheet 1 2 3 5 > Record the Cost of Goods returned by Sarah's Cycles at $140. Note: Enter debits before credits. General Journal Debit Credit Date February 09 Record entry Clear entry View general journal Journal entry worksheet Record the receipt of cash from Sarah's Cycles at $675. Note: Enter debits before credits Date General Journal Debit Credit March 02 Record entry Clear entry View general journal E6-14 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 $900 (cost of goods sold $550). On February 9. Sarah's Cycles returned to Cycle Wholesaling one-quarter of the merchandise from February 1 (cost of go returned was $140). 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 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 Reg 4 Calculate the gross profit percentage for the sale to Sarah's Cycles. (Round your answer to 1 decimal place.) Gross Pro Porcentage ( Req 1 to 3
