Prepare the journal entries to record the sale on February $1,$ goods Cycle Wholesaling sold merchandise on account, with terms n$/60,$ to Sarah$$s Cycles on February $1$ for $$700($cost of goods sold of $$460).$ On February $9,$ Sarah$$s Cycles returned to Cycle Wholesaling one$-$quarter of the merchandise from February $1($cost of goods returned was $$115).$ Cycle Wholesaling uses a perpetual inventory system, and it allows returns only within $15$ days of initial sale.

Required:

$1.$ to $3.$ Prepare the journal entries to record the sale on February $1,$ goods returned on February $9,$ and cash collected on March $2.$

$4.$ Calculate the gross profit percentage for the sale to Sarah$$s Cycles.returned on February $9,$ and cash collected on March $2.($If no entry is

required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

Journal entry worksheet

$1$

Record receipt of payment for sales on account.

Note: Enter debits before credits.