Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I Required information [ The following information applies to the questions displayed below. ] Nicole's Getaway Spa ( NGS ) has been so successful that

I
Required information
[The following information applies to the questions displayed below.]
Nicole's Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by selling merchandise. She sells things such as nail polish, at-home spa kits, cosmetics, and aromatherapy items. Nicole uses a perpetual inventory system and is starting to realize all of the work that is created when inventory is involved in a business. The following transactions were selected from among those completed by NGS in August.
August 2 Sold a bundle of spa services with a merchandise basket. When sold separately, the spa service part of the bundle sells for $608 and the merchandise basket normally sells for $152. Together, the bundle was sold to Val Amy for cash at a selling price of $660(total). Val booked a spa treatment for August 10, and she took the basket of goods with her. The goodshad cost NGS $145.
August 3 Sold 5 identical items of merchandise to Cosmetics R Us on account at a selling price of $710(total); terms n30. The goods cost NGS $610.
August 6 Cosmetics R Us returned one of the five items purchased on August 3. The item could still be sold by NGS in the future and credit was given to the customer.
August 10Val Amy used one of the three spa treatments she had purchased as part of the bundle sold to her on August 2.
August 20 Sold two at-home spa kits to Meghan Witzel for $510 cash. The goods cost NGS $161.
August 22 cosmetics R Us paid its remaining account balance in full.
2-a. Calculate the Sales Revenue and Cost of Goods Sold for the transactions listed above (but exclude Service Revenue for spa services).
2-b. What is Nicole's Getaway Spa's gross profit percentage (excluding Service Revenue)?(Round your answer to 1 decimal place.)
\table[[2-a. Sales Revenue,],[2-a. Cost of Goods Sold,],[2-b. Gross Profit Percentage,%
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Non Accounting Students

Authors: John Dyson, Ellie Franklin

10th Edition

1292286938, 9781292286938

More Books

Students also viewed these Accounting questions