Presented below is information for Bach Company for the month of March 2014.

Cost of goods sold	$227,620	Rent expense	$33,000
Freight-out	8,490	Sales discounts	6,670
Insurance expense	5,330	Sales returns and allowances	12,310
Salaries and wages expense	57,840	Sales revenue	394,090

Prepare a multiple-step income statement.

BACH COMPANY Income Statement For the Month Ended March 31, 2014
DividendsNet Income / (Loss)Retained Earnings, March 1Retained Earnings, March 31Sales RevenuesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating Expenses
	$
AddLess:
	$
DividendsNet Income / (Loss)Retained Earnings, March 1Retained Earnings, March 31Sales RevenuesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating Expenses
DividendsNet Income / (Loss)Retained Earnings, March 1Retained Earnings, March 31Sales RevenuesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating Expenses
DividendsNet Income / (Loss)Retained Earnings, March 1Retained Earnings, March 31Sales RevenuesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating Expenses
DividendsNet Income / (Loss)Retained Earnings, March 1Retained Earnings, March 31Sales RevenuesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating Expenses
DividendsNet Income / (Loss)Retained Earnings, March 1Retained Earnings, March 31Sales RevenuesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating Expenses	$

Compute the gross profit rate.(Round answer to 2 decimal places, e.g. 25.20%.)

Gross profit rate

%

Ready-Set-Go Co. distributes suitcases to retail stores and extends credit terms of2/10, n/30 to all of its customers. At the end of June, Ready-Set-Gos inventory consisted of suitcases costing $1,900. During the month of July, the following merchandising transactions occurred.

July1	Purchased suitcases on account for $2,300from Trunk Manufacturers, FOB destination, terms2/10, n/30. The appropriate party also made a cash payment of $100for freight on this date.
3	Sold suitcases on account to Satchel World for $3,700. The cost of suitcases sold is $2,220.
9	Paid Trunk Manufacturers in full.
12	Received payment in full from Satchel World.
17	Sold suitcases on account to Lady GoGo for $2,800. The cost of the suitcases sold was $1,680.
18	Purchased suitcases on account for $1,850from Holiday Manufacturers, FOB shipping point, terms2/10, n/30. The appropriate party also made a cash payment of $120for freight on this date.
20	Received $390credit (including freight) for suitcases returned to Holiday Manufacturers.
21	Received payment in full from Lady GoGo.
22	Sold suitcases on account to Vagabond for $3,200. The cost of suitcases sold was $1,920.
30	Paid Holiday Manufacturers in full.
31	Granted Vagabond $220credit for suitcases returned costing $132.

Ready-Set-Gos chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold. Journalize the transactions for the month of July for Ready-Set-Go using a perpetual inventory system.(Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1July 3July 9July 12July 17July 18July 20July 21July 22July 30July 31 July 1July 3July 9July 12July 17July 18July 20July 21July 22July 30July 31 (To record credit sale.) (To record cost of merchandise sold.) July 1July 3July 9July 12July 17July 18July 20July 21July 22July 30July 31 July 12 July 1July 3July 9July 12July 17July 18July 20July 21July 22July 30July 31 (To record credit sale.) (To record cost of merchandise sold.) July 1July 3July 9July 12July 17July 18July 20July 21July 22July 30July 31 (To record merchandise purchased.) (To record freight on merchandise purchased.) July 1July 3July 9July 12July 17July 18July 20July 21July 22July 30July 31 July 21 July 1July 3July 9July 12July 17July 18July 20July 21July 22July 30July 31 (To record credit sale.) (To record cost of merchandise sold.) July 1July 3July 9July 12July 17July 18July 20July 21July 22July 30July 31 July 1July 3July 9July 12July 17July 18July 20July 21July 22July 30July 31 (To record merchandise returned.) (To record cost of merchandise returned.)