Required information CC6-1 Accounting for Merchandising Operations [LO 6-4, LO 6-5, LO 6-6) [The following information applies to the questions displayed below.) Nicole's Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by selling merchandise. She sells things such as nail polish, at-home spa kits, cosmetics, and aromatherapy items. Nicole uses a perpetual inventory system and is starting to realize all of the work that is created when inventory is involved in a business. The following transactions were selected from among those completed by NGS in August. Aug. 2 Sold a bundle of spa services with a merchandise basket. When sold separately, the spa service part of the bundle sells for $416 and the merchandise basket normally sells for $104. Together, the bundle was sold to Val Amy for cash at a selling price of $450 (total). Val booked a spa treatment for August 10, and she took the basket of goods with her. The goods had cost NGS $85. Aug. 3 Sold 5 identical items of merchandise to Cosmetics R Us on account at a selling price of $510 (total); terms n/30. The goods cost NGS $410. Aug. 6 Cosmetics R Us returned one of the five items purchased on August 3. The item could still be sold by NGS in the future and credit was given to the customer. Aug. 10 Val Amy used one of the three spa treatments she had purchased as part of the bundle sold to her on August 2. Aug. 20 sold two at-home spa kits to Meghan Witzel for $310 cash. The goods cost NGS $101. Aug. 22 Cosmetics R Us paid its remaining account balance in full. CC6-1 Part 1 Required: 1. Prepare journal entries for each transaction. No additional sales returns are expected. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No Date General Journal Debit Credit 1 Aug 02 Cash 450 Sales Revenue 416 X X x 2 Aug 02 Cost of Goods Sold 85 Inventory 85 3 Aug 03 510 Accounts Receivable Sales Revenue 510 OOOO 4 Aug 03 410 Cost of Goods Sold Inventory 410 5 Aug 06 102 Sales Revenue Accounts Receivable 102 6 6 Aug 06 82 Inventory Cost of Goods Sold 82 7 Aug 10 408 X Deferred Revenue Accounts Payable x 408 X | 8 Aug 20 Cash 310 ool Sales Revenue 310 9 Aug 20 101 Cost of Goods Sold Inventory 101 10 Aug 22 Cash > vol Accounts Receivable CC6-1 Accounting for Merchandising Operations [LO 6-4, LO 6-5, LO 6-6) [The following information applies to the questions displayed below.] Nicole's Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by selling merchandise. She sells things such as nail polish, at-home spa kits, cosmetics, and aromatherapy items. Nicole uses a perpetual inventory system and is starting to realize all of the work that is created when inventory is involved in a business. The following transactions were selected from among those completed by NGS in August. Aug. 2 Sold a bundle of spa services with a merchandise basket. When sold separately, the spa service part of the bundle sells for $416 and the merchandise basket normally sells for $104. Together, the bundle was sold to Val Amy for cash at a selling price of $450 (total). Val booked a spa treatment for August 10, and she took the basket of goods with her. The goods had cost NGS $85. Aug. 3 Sold 5 identical items of merchandise to Cosmetics R Us on account at a selling price of $510 (total); terms n/30. The goods cost NGS $410. Aug. 6 Cosmetics R Us returned one of the five items purchased on August 3. The item could still be sold by NGS in the future and credit was given to the customer. Aug. 10 Val Amy used one of the three spa treatments she had purchased as part of the bundle sold to her on August 2. Aug. 20 Sold two at-home spa kits to Meghan Witzel for $310 cash. The goods cost NGS $101. Aug. 22 Cosmetics R Us paid its remaining account balance in full. CC6-1 Part 2 2-a. Calculate the Sales Revenue and Cost of Goods Sold for the transactions listed above (but exclude Service Revenue for spa services) Sales Revenue Cost of Goods Sold 2-b. What is Nicole's Getaway Spa's gross profit percentage (excluding Service Revenue)? (Round your answer to 1 decimal place.) Gross Profit Percentage %
