find gross profit percentage

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 $1.000 (cost of goods sold of $640). On February 9, Sarah's Cycles returned to Cycle Wholesaling one-quarter of the merchandise from February 1 (cost of goods returned was $160). 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 Reg 1 to 3 Reg 4 Prepare the journal entries to record the sale on February 1, 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 View journal entry worksheet No 1 General Journal Date February 01 Debit Credit Accounts Receivable Sales Revenue 1.000 1,000 2 February 01 Cost of Goods Sold Inventory 640 840 3 February 09 Sales Returns and Allowances Accounts Receivable 250 250 4 February 09 160 Inventory Cost of Goods Sold 160 5 March 02 750 Cash Accounts Receivable 750 Reg 4 > Complete this question by entering your answers in the tabs below. Reg 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 Profit Percentage %