If net sales are $300,000, cost of goods available for sale is $280,000, and gross profit percentage is 35%.

1. What is the amount of ending inventory? 

  

2. During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows:

Jan. 6	Purchased goods for $1,500 from Green with terms 3/10, n/30.
6	Purchased goods from Munoz for $1,200 with terms 3/10, n/30.
14	Paid Green in full.
Feb. 2	Paid Munoz in full.
28	Purchased goods for $500 from Reynolds with terms 3/10, n/45.

Required:

Prepare journal entries to record the transactions, assuming Axe uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 

3. During the months of January and February, Solitare Corporation sold goods to three customers. The sequence of events was as follows:

Jan. 6	Sold goods for $120 to Wizard Inc. with terms 2/10, n/30. The goods cost Solitare $71.
7	Sold goods to Spyder Corp. for $83 with terms 3/10, n/30. The goods cost Solitare $61.
14	Collected cash due from Wizard Inc.
Feb. 3	Collected cash due from Spyder Corp.
28	Sold goods for $53 to Bridges with terms 3/10, n/45. The goods cost Solitare $32.

Required:

Assuming that Sales Discounts are reported as contra-revenue, compute Net Sales for the two months ended February 28. (Do not round intermediate calculations. Round your answer to 2 decimal places.)