More Info Nov 4 Purchased $5,900 of merchandise on account from Bestbuy Tire. Terms, 1/15, n/45, FOB shipping point. Bestbuy Tire prepaid the $450 shipping cost and added the amount to the invoice. 7 Purchased $300 of supplies on account from Office Buys. Terms, 4/10, n/30, FOB destination. 9 Sold $1,800 (cost, $400) of merchandise on account to F. Smith. Terms, 4/15, 1/45, FOB destination. 11 Paid $65 freight charges to deliver goods to F. Smith. 13 Returned $800 of the merchandise purchased on November 4 and received a credit. 15 Sold $1,550 (cost, $250) of merchandise to cash customers. 16 Paid for the supplies purchased on November 7. 18 Paid Bestbuy Tire the amount due from the November 4 purchase in full. 20 F. Smith returned $100 (cost, S60) of merchandise from the November 9 sale. 22 Purchased $4,500 of inventory. Paid cash. 23 Received payment in full from F. Smith for the November 9 sale. 30 The refund liability for the month of November was estimated to be $300. The cost of goods estimated to be returned was $150 Print Done Requirement 1. Journalize the transactions on the books of Best Deal Tire, Inc. assuming the "net" method is used. (Record debits first, then credits. Exclude explanations from any journal entries.) Nov 4: Purchased $5,900 of merchandise on account from Bestbuy Tire. Terms, 1/15, n/45, FOB shipping point. Bestbuy Tire prepaid the $450 shipping cost and added the amount to the invoice. Journal Entry Date Accounts Debit Credit Nov Nov 7: Purchased $300 of supplies on account from Office Buys. Terms, 4/10, n/30, FOB destination. Journal Entry Accounts Date Debit Credit Nov Nov 9: Sold $1,800 (cost. $400) of merchandise on account to F. Smith. Terms. 4/15. n/45. FOB destination. Begin by journalizing the revenue from the sale of merchandise. (Do not yet record the cost related to the sale. We will do this in the next journal entry) Journal Entry Accounts Date Debit Credit Nov 9 Now journalize the cost of goods sold related to the sale of merchandise from November 9. Journal Entry Date Accounts Debit Credit Nov Nov 11: Paid $65 freight charges to deliver goods to F. Smith. Journal Entry Date Accounts Debit Credit Nov 11 Nov 13: Returned $800 of the merchandise purchased on November 4 and received a credit. Journal Entry Accounts Date Debit Credit Nov 13 Nov 15. Sold $1,550 (cost, $250) of merchandise to cash customers. , Begin by journalizing the revenue from the sale of merchandise. (Do not yet record the cost related to the sale. We will do this in the next journal entry.) Journal Entry Accounts Date Debit Credit Nov 15 Now joumalize the cost of goods sold related to the sale of merchandise from November 15. Journal Entry Date Accounts Debit Credit Nov 15 Nov 16: Paid for the supplies purchased on November 7 Journal Entry Date Accounts Debit Credit Nov 16 Nov 18: Paid Bestbuy Tire the amount due from the November 4 purchase in full. Journal Entry Date Accounts Debit Credit Nov 18 Nov 20: F. Smith returned $100 (cost, $60) of merchandise from the November 9 sale. Start by recording the receivable adjustment portion of the merchandise return. (Do not yet record the inventory adjustment related to the return. We will do this in the next journal entry) Journal Entry Date Accounts Debit Credit Nov 20 Now journalize the inventory adjustment portion of the merchandise return from November 20 Journal Entry Date Accounts Debit Credit Nov 20 Nov 20: F. Smith returned $100 (cost, $60) of merchandise from the November 9 sale. Start by recording the receivable adjustment portion of the merchandise return. (Do not yet record the inventory adjustment related to the return. We will do this in the next journal entry) Journal Entry Accounts Date Debit Credit Nov 20 Now journalize the inventory adjustment portion of the merchandise return from November 20. Journal Entry Date Accounts Debit Credit Nov 20 Nov 22: Purchased $4,500 of inventory. Paid cash. Journal Entry Date Accounts Debit Credit Nov 221 Nov 23: Received payment in full from F. Smith for the November 9 sale. Journal Entry Date Accounts Debit Credit Noy 23 Nov 30: The refund liability for the month of November was estimated to be $300. The cost of goods estimated to be returned was $150. Begin by journalizing the liability portion of the entry. (Do not yet record the asset portion of the entry. We will do that in the following step.) Journal Entry Accounts Date Debit Credit Nov 30 Now journalize the asset adjustment portion of the estimated returns transaction: The cost of goods estimated to be returned was $150. Journal Entry Accounts Date Debit Credit Nov 30 Requirement 2. What was Best Deal Tire, Inc.'s gross profit for the month of November? Begin by selecting the formula, and then enter the amounts to determine gross profit for the month. Gross profit