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Cycle Wholesaling sold merchandise on account, with terms n$/60,$ to Sarah's Cycles on February $1$ for $$1,000($cost of goods sold of $$600).$ On February $9,$ Sarah's Cycles returned to Cycle Wholesaling one$-$quarter of the merchandise from February $1($cost of goods returned was $$150).$ Cycle Wholesaling uses a perpetual inventory system, and it allows returns only within $15$ days of initial sale.

Required:

to $3.$ Prepare the journal entries to record the sale on February $1,$ goods returned on February $9,$ and cash collected on March $2.$

Calculate the gross profit percentage for the sale to Sarah's Cycles.

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Req $1$ to of of

Req $4$

Calculate the gross profit percentage for the sale to Sarah's Cycles. $($Round your answer to $1$ decimal place.$)$

Gross Profit Percentage

$\%$