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Question 1: (10 Marks) The ledger of Riyadh Shop showed Cash 1,250 SR; and Owner's Capital 1,250 SR, at the beginning of the current season

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Question 1: (10 Marks) The ledger of Riyadh Shop showed Cash 1,250 SR; and Owner's Capital 1,250 SR, at the beginning of the current season on March 1. These transactions occurred during March 2019. Mar 5. Purchased sport bags, gloves, and shoes on account from Jeddah Co. 1,350 SR, FOB shipping point, terms 2/10,n/60. Mar 7. Paid freight on Jeddah Co. purchases 40 SR Mar 9. Received credit from Jeddah Co. for merchandise returned 100 SR. Mar 10. Sold merchandise on account to BJ Sportswaers 475 SR, FOB destination, terms n30; the cost of goods sold was 375 SR Mar 10, Paid freight out 30,5 SR. Mar 12. Purchased shoes, sweaters, and other accessories on account from London Sportswear 230 SR terms 1/10,n/30. Mar 17. Received credit from London Sportswear for merchandise returned 30 Mar 20. Made sales on account to a member 700 SR, terms n/30.the cost of goods sold was 600 SR Mar 21. Paid London Sportswear in full Mar 27. Granted credit 37.5 SR to a member for clothing that did not fit properly costing 27.5 SR Mar 30. Received payments from the member in full. Instructions: 1. Journalize the March transactions for Riyadh Shop using a perpetual inventory system. 2. Using T accounts, enter the beginning balances (if any) in the ledger accounts and post the March transactions. 3. Prepare a trial balance on March 31, 2019. 4. Prepare a multiple-steps income statement. Other data: Riyadh Shop received a dividend revenue of 900 SR. Riyadh Shop incurred a 1,000 SR loss on disposal of equipment. Riyadh Shop paid a 200 SR Interest expense. Calculate the gross profit for March 2019. The 5 company had a gross profit of 14% in the previous month, February 2019. Compare the result with the last month gross profit and comment on that. The industrial average is 22% in March 31, 2019. Compare your result for March 2019 with the industrial average and comment on how the company can improve its performance and compete in the market

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