Instructions

After you have read and understood the learning resources in this module, work through the following exercises using Chapter 6, Accounting for Merchandising Businesses, from the textbook. You must include a cover page and references in APA style.

Part 1. Do the following exercises on different transactions where purchases, discounts and returns are made.

Librera Nuevo Amanecer sold 600 books on credit at $20.00 each with a sale term of 2/10 n/30. The cost of books sold is $8,500. After selling the books, the customer returned 50 books because they were damaged. The client then paid the balance due on the fifth day after purchasing the books. Jornaliza the sale, return and payment made by the customer. Indicate the gross profit obtained by Librera Nuevo Amanecer for this sale.

Computers and More offers discounts to its customers and allows the customer to return the product if they are not satisfied. Computers and More had sales of $850,000 and offers the customer a payment term of 3/12 n/30. The company received $15,000 in returned items. Cost of goods sold for the period after returns was $320,000. Calculate net profit and gross profit.

Princess Jewelry purchased inventory for $7,000 on credit from Wholesale Jewelry on February 2. The sale term they offered was 3/10 n/30. When they received the merchandise there were some broken pieces with a total value of $800.00, which they returned to Wholesale Jewelry. On February 8, Princess Jewelry paid the balance owed. Jornaliza the purchase, the return and the payment made.

Part 2. Jornaliza the following entries of purchases, sales and returns.

Ferretera Amigos carried out the following transactions during the month of March:

Fecha (marzo)	Transaccin
2	$12,000 of inventory was purchased on credit with a term of 2/13 n/30 and FOB shipping point.
4	Merchandise for $400 of the purchase made on March 2 was returned because it was defective.
6	Shipping was paid for the purchase of inventory purchased on March 2. PAYMENT IS $150
11	Inventory was sold on credit to a customer for $5,000 with a term of sale of 2/10 n/30.
12	The amount owed for the purchase on March 2 was paid.
15	A $500 allowance was offered to the customer on the March 11 purchase.
20	The customer who made the purchase on the 11th paid in full with the corresponding discounts.