Feb 1 Purchased Inventory on account for 20000, terms of 2/10,n/30

Feb 1 Receievd a deposit of 10000 from a customer for products to be delivered later

Feb 1 Returned damaged inventory from the February 1 purchase worth 3500

Feb 5 Sold products for cash of 13000, the cost of goods sold was 6000

Feb 10 Pad the balance owing to the supplier of inventory from February 1

Feb 16 Receieved an advertising bill for 3000, which will be paid next month

Feb 21 Sold products on account for 31000, the cost of goods was 10000

Feb 22 Paid wages and benefits with 6000 cash, this amunt includes sales salaries of 4000 and office salaries of 2000

Feb 25 Purchased new computers on account for 4000

Feb 26 A customer agreed to keep a defective product for a 30% allowance, the customer originally paid 1000 on account for the product

Feb 27 A customer returned an incorrect product for cash, this product had a sales price of 500 and a cost of 300, the item was returned to the sales floor for resale

Feb 28 Incurred Maintenenace expense at the head office of 2000 on account

The above are the journal entries

archandising Transactions ntory: Merchandising Trans Chapter 7 Case Study (S-1 LO 3 4 5 George K. Con operations, Febru e K. Connor is a company ons, February 2018, the following transactions occurred. " that sells goods using a perpetual inventory system. During its first month of Purcha Feb 1 Feb 1 or $20,000, terms of 2/10, n/30 Feb 5 Purchased inventory on account for $20,000, terms of 2/10,ns Received a deposit of $10,000 fre $10,000 from a customer for products to be delivered later 1 Returned damaged inventory from the February 1 purchase worth $3,500 Sold products for cash of $13,000, the cost of goods was so h 10 Paid the balance owing to the supplier of inventory from Febuary h 16 Received an advertising bill for $3.000, which will be paid next month coh 21 Sold products on account for $31.000, the cost of goods was $10,000 Feb 22 Paid wages and benefits benefits with $6,000 cash; this amount includes sales salaries of $4,000 and office salaries of $2,000 so 25 Purchased new computers on account for $4,000 Feb 26 A customer agreed to keep a defective product for a 30% allowance, the customer originally paid $1,000 on account for the product Feb 27 A customer returned an incorrect product for cash; this product had a sales price of $500 and a cost of $300; the item was returned to the sales floor for resale Feb 28 incurred maintenance expense at the head office of $2,000 on account The company uses the following chart of accounts to implement its accounting system. Account Description Account# Account Description Account ASSETS Cash Accounts Receivable Merchandise Inventory Computers REVENUE Sales Revenue Sales Returns & Allowances 101 105 115 120 EXPENSES Cost of Goods Sold Advertising Expense Maintenance Expense Salaries Expense LIABILITIES Accounts Payable Unearned Revenue 200 215 545 OWNER'S EQUITY Connor, Capital Connor, Withdrawals 300 310 Post the entries to the general ledger Account: Date Description GL No: Balance PR DR CR GL No: Account: Date Description PR DR CR Balance GL No: Account: Date Description PR DR CR Balance c) Prepare a trial balance. Chapter 7 d) Prepare a multiple-step income statement for the per tatement for the period. e) Prepare a statement of owner's equity for the period. Inventory: Merchandising Transactions # Prepare a classified balance sheet for the period. Chapter 7 g) Calculate the gross profit margin on product sales. h) Calculate the current ratio at the end of the period