JOURNAL ENTRY WORKSHEET

a(1). Record the cash sales of $620,000.

a(2). Record the cost of goods sold of $289,350.

b(1). Record the return by a customer of unsatisfactory merchandise that was in perfect condition. A cash refund of $5,400 was given to the customer.

b(4). Record the merchandise returned by the customer back into inventory. The original cost of the merchandise was $3,500.

c(1). Record the sales on account of $11,400 on terms 2/10, n/30.

c(2). Record the cost of goods sold of $6,840.

d. Record the collection of half of the balance of $5,586 owed by the customer within the discount period.

e. Record the allowance of $1,750 to the customer.

LBS is considering a contract to sell building supplies to a local home builder for $28,000. These materials will cost LBS $20,800. What would be the increase (or decrease) gross profit and gross profit percentage?

Gross Profit		by
Gross Profit Percentage		to		%