Larrys Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:

a.	Sold merchandise for cash (cost of merchandise $345,350).	$	725,000
b.	Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $4,900).		7,500
c.	Sold merchandise (costing $10,200) to a customer on account with terms n/30.		17,000
d.	Collected half of the balance owed by the customer in (c).		8,500
e.	Granted a partial allowance relating to credit sales the customer in (c) had not yet paid.

1. Compute Net Sales and Gross Profit for LBS.

Net Sales: Gross Profit:

Larrys Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:

a.	Sold merchandise for cash (cost of merchandise $345,350).	$	725,000
b.	Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $4,900).		7,500
c.	Sold merchandise (costing $10,200) to a customer on account with terms n/30.		17,000
d.	Collected half of the balance owed by the customer in (c).		8,500
e.	Granted a partial allowance relating to credit sales the customer in (c) had not yet paid.		2,450

• Record the cash sales of $725,000.
• Record the cost of goods sold of $345,350.
• Record the return by a customer of unsatisfactory merchandise that was in perfect condition. A cash refund of $7,500 was given to the customer.
• Record the merchandise returned by the customer back into inventory. The original cost of the merchandise was $4,900.
• Record the sales on account of $17,000 on terms n/30.
• Record the cost of goods sold of $10,200.
• Record the collection of half of the balance of $8,500 owed by the customer within the discount period.
• Record the allowance of $2,450 granted to the customer.