Part 1:

Consider the following perpetual system merchandising transactions of Belton Company. Use a separate account for each receivable and payable; for example, record the sale on June 1 in Accounts ReceivableAvery & Wiest.

June 1 Sold merchandise to Avery & Wiest for $9,650; terms 2/5, n/15, FOB destination (cost of sales $6,800).

2 Purchased $5,050 of merchandise from Angolac Suppliers; terms 2/10, n/20, FOB shipping point.

4 Purchased merchandise inventory from Bastille Sales for $11,700; terms 1/15, n/45, FOB Bastille Sales.

5 Sold merchandise to Gelgar for $11,300; terms 2/5, n/15, FOB destination (cost of sales $7,850).

6 Collected the amount owing from Avery & Wiest regarding the June 1 sale.

12 Paid Angolac Suppliers for the June 2 purchase.

20 Collected the amount owing from Gelgar regarding the June 5 sale.

30 Paid Bastille Sales for the June 4 purchase.

Prepare General Journal entries to record the above transactions.

Part 2:

Based on the information provided above, calculate the following:

a. Calculate Net sales.

b. Calculate Cost of goods sold.

c. Calculate Gross profit from sales.