Required Information PB6-3 (Algo) Recording Sales 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.] Sanders Lumber \& More (SLM) is a local hardware store. SLM uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $304,350 ). b. Received merchandise returned by customers as unsat isfactory (but in perfect condition) for cash refund (original cost of merchandise $3,500 ). c. Sold merchandise (costing $5,400 ) to a custoser on account with terms n/30. d. collected half of the balance oned by the customer in (c). e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. f. Anticipate further returns of merchandise (costing $3,500 ) after year-end from sales made during the year. $700,000 5,600 9,000 4, 500 1.,950 5,400 PB6-3 (Algo) Part 1 Required: 1. Compute Net Sales and Gross Profit for SLM. 3repare journal entries to record transactions (a)(). (if no entry is required for a transaction/event, select "No Joi Required n in the first account field.) x Record the entry. 6 The merchandise sold had a cost of $5,400 Record the entry. 10 7 Collected half of the $9,000 balance owed by the cussomer in transaction c. Record the entry. 8 Granted a partial $1,950 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 $5,400 sales made during the year. Record the entry. 10 The anticipated merchandise returns have a cost of $3,500. Record the entry. Note : = journal entry has been entered Prepare journal entries to record transactions (a)-( (1). (If no entry is required for a transaction/event, select "No Journal En Required" in the first account field.) 1 Sold merchandise for $700,000 cash. Record the entry. 2 The merchandise sold had a cost of $304,350. Record the entry. 3 Received merchandise retumed by castomers as unsatisfactory (but in perfect condition) for $5,600 cast refund. Recond the entry 4 The merchandise returned had a cost of $3,500. Recond the untry 5 Sold merchandise to a customer for $9,000 on account with terms n/30. Record the entry. 6. The merchandise sold tad a cost of $5,400. Record the entry. 7 Collected half of the $9,000 balanoe owed by the customer in trancaction PB6-3 (Algo) Recording Sales 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.] Sanders Lumber \& More (SLM) is a local hardware store. SLM uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $304,350 ). b. Received merchandite returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $9,500 ). c. Sold merchandise (costing $5,400 ) to a custoner on account with teras n/30. d. Collected half of the balance owed by the customer in (c). e. Oranted a partial allowance relating to credit sales the customer in (c) had not yet paid. f. Anticipate further returns of merchandise (costing $3,500 ) after year-end from sales nade during the year. $700,000 5,600 9,000 4,500 1, 950 5,400 PB6-3 (Algo) Part 2 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.)
