HW 5 Merchandising

Homework 5 Merchandising Complete the journal entries for the following Transactions 04/01/2020: Chuck Inc (buyer purchases 10,000 units from Norris Inc (seller) for $20,000. The cost to Norris is $15,000. Terms are 3/15, V60 FOB Destination Chuck Inc Norris Inc. DR/CR Account Amount DR/CR Account Amount 04/01/2020: Shipping costs of $100 are paid in cash per the contract terms Chuck Inc. Norris Inc. DR/CR Account Amount DR/CR Account Amount 04/03/2020: Chuck Inc (buyer) returns 500 units because they are defective, Chuck Inc. Norris Inc. DR/CR Account Amount DR/CR Account Amount 04/03/2020: Chuck Inc (buyer) realizes the units all orrived with dead batteries. They are willing to replace the battery themselves, but ask for and receive of $1,000 allowance. Chuck Inc. Norris Inc. DR/CR Account Amount DR/CR Account Amount 04/15/2020: Chuck Inc pays the amount due, net of any discounts, followed Chuck Inc. Norris Inc. DR/CR Account Amount DR/CR Account Amount Prepare Norris'income Statement through Gross Profit What is Norris' Gross Margn Ratio? Homework 5 Merchandising Complete the journal entries for the following Transactions 05/01/2020: Venus Inc. purchases 5,000 units from Serena Inc. for $30,000. Serena's cost is $24,000. Terms are 2/10,n/30 FOB Shipping Point Venus Inc. Serena Inc. DR/CR Account Amount DR/CR Account Amount 05/01/2020: Shipping costs of $500 are paid in cash per the contract terms Venus Inc. Serena Inc. DR/CR Account Amount DR/CR Account Amount 05/05/2020: Venus returns 1,000 units because she doesn't like the decorative pattern. Venus Inc. Serena Inc. DR/CR Account Amount DR/CR Account Amount 05/31/2020: Venus pays the amount due, net of any discounts, if allowed. Venus Inc. Serena Inc. DR/CR Account Amount DR/CR Account Amount Prepare Serena's Income Statement through Gross Profit What is Serena's Gross Margin Ratio? Debit Credit Homework 6 Merchandising Accounts Payable Accounts Receivable Cash Cost of Goods Sold Inventory Loss on Defective Goods Sales Sales Discounts Sales Returns and Allowances Shipping Expense Cost of Goods Sold Gross Profit Net Sales Sales Sales Discounts Sales Returns and Allowances