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 $1,200 (cost of goods sold of $700). On February 9, Sarah's Cycles returned to Cycle Wholesaling one- quarter of the merchandise from February 1 (cost of goods returned was $190). 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. ces Complete this question by entering your answers in the tabs below. Reg 1 to 3 Reg 4 Prepare the journal entry to record the sales, Goods returned on February 9 and Cash collected on March 2. (If transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list