Nov 4 Purchased $5,500 of merchandise on account from Salem Tire. Terms, 1/15, n/45, FOB shipping point. Salem Tire prepaid the $250 shipping cost and added the amount to the invoice. 7 Purchased $400 of supplies on account from Bargain Depot. Terms, 4/10, n/30, FOB destination. 9 Sold $900 (cost, $425) of merchandise on account to W. Furmick. Terms, 3/15, n/45, FOB destination. 11 Paid $75 freight charges to deliver goods to W. Furmick. 13 Returned $1,300 of the merchandise purchased on November 4 and received a credit. 15 Sold $1,450 (cost, $225) of merchandise to cash customers. 16 Paid for the supplies purchased on November 7. 18 Paid Salem Tire the amount due from the November 4 purchase in full. 20 W. Furmick returned $600 (cost, $300) of merchandise from the November 9 sale. 22 Purchased $2,500 of inventory. Paid cash. 23 Received payment in full from W. Furmick for the November 9 sale. 30 The refund liability for the month of November was estimated to be $220. The cost of goods estimated to be returned was $132. Requirements 1. Journalize the transactions on the books of Peter's Tire, Inc. assuming the "net" method is used. 2. What was Peter's Tire, Inc.'s gross profit for the month of November? Requirement 1. Journalize the transactions on the books of Peter's Tire, Inc. assuming the "net" method is used. (Record debits first, then credits. Exclude explanations from any journal entries.) Nov 4: Purchased $5,500 of merchandise on account from Salem Tire. Terms, 1/15, n/45, FOB shipping point. Salem Tire prepaid the $250 shipping cost and added the amount to the invoice. Journal Entry Date Accounts Debit Credit Nov 4 Nov 7: Purchased $400 of supplies on account from Bargain Depot. Terms, 4/10, n/30, FOB destination. Journal Entry Date Accounts Debit Credit Nov 7 Nov 9: Sold $900 (cost, $425) of merchandise on account to W. Furmick. Terms, 3/15, 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 Date Accounts Debit Credit Nov 91 ET Now journalize the cost of goods sold related to the sale of merchandise from November 9. Journal Entry Date Accounts Debit Credit Nov 9 Nov 11: Paid $75 freight charges to deliver goods to W. Furmick. Journal Entry Date Accounts Debit Credit Nov 11 Nov 13: Returned $1,300 of the merchandise purchased on November 4 and received a credit. Journal Entry Date Accounts Debit Credit Nov 13 Nov 15: Sold $1,450 (cost, $225) 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 Date Accounts Debit Credit Nov 15 Now journalize the cost of goods sold related to the sale of merchandise from November 15. Journal Entry Date Accounts Debit Credit Nov 151 Nov 16: Paid for the supplies purchased on November 7 Journal Entry Date Accounts Debit Credit Nov 16 Nov 18: Paid Salem Tire the amount due from the November 4 purchase in full. Journal Entry Date Accounts Debit Credit Nov 18 Nov 20: W. Furmick returned $600 (cost, $300) 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 22: Purchased $2,500 of inventory. Paid cash. Journal Entry Date Accounts Debit Credit Nov 22 Nov 23: Received payment in full from W. Furmick for the November 9 sale. Journal Entry Date Accounts Debit Credit Nov 23|| Nov 30: The refund liability for the month of November was estimated to be $220. The cost of goods estimated to be returned was $132. 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 Date Accounts Debit Credit Nov 30 Now journalize the asset adjustment portion of the estimated returns transaction: The cost of goods estimated to be returned was $132. Journal Entry Date Accounts Debit Credit Nov 301 Requirement 2. What was Peter's 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