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Required information PA6-3 (Algo) Recording Sales with Discounts and Estimated and Actual Returns, and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5] [The following information

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Required information PA6-3 (Algo) Recording Sales with Discounts and Estimated and Actual Returns, and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5] [The following information applies to the questions displayed below.] Foster Supplies is a wholesaler of hair supplies. Foster Supplies uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise \$34,917). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of werchandise $390). c. Sold merchandise (costing $9,595 ) to o customer on account with terms n/60. d. Collected half of the balance owed by the customer in (c). e. Granted a partial allowance relating to credit soles the customer in (c) had not yet paid. \$ 62,080 f. Anticipate further returns of merchandise (costing $310 ) after yesr-end from sales mode during the year. PA6-3 (Algo) Part 3 3. Prepare joumal entries to record transactions (a)-(1). (If no entry is required for a transoction/event, select "No Journal Entry Required" in the first occount field.) 1 Sold merchandise for $62,080 cash. Record the entry. 2. The merchandise sold had a cost of $34,917. Record the entry. 3 Received merchandise returned by customers as unsatisfactory (but in perfect condition) for $420 cash refund. Record the entry. 4. The merchandise returned had a cost of $390. Record the entry. 5 Sold merchandise to a customer for $20,200 an account with terms n/60. Record the entry. Note: = journal entry has been entered 6 The merchandise sold had a cost of $9,595. Record the entry. 7 Collected half of the $20,200 balance owed by the customer in transaction c. Record the entry. 8 Granted a partial \$194 allowance relating to credit sales the customer in transaction c had not yet paid. Record the entry. 9 Anticipate further returns of merchandise after year -end from $430 sales made during the year, Record the entry. 10. The anticipated merchandise recurns have a cost of 5510 . Record the entry. Note: = journal entry has been entered Journal entry worksheet Sold merchandise for $62,080 cash. Record the entry. Note: Enter debits before credits

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