Question
Required information Skip to question [The following information applies to the questions displayed below.] Nicole's Getaway Spa (NGS) has been so successful that Nicole has
Required information
Skip to question
[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 $496 and the merchandise basket normally sells for $124. Together, the bundle was sold to Val Amy for cash at a selling price of $510 (total). Val booked a spa treatment for August 10, and she took the basket of goods with her. The goods had cost NGS $110. | |
Aug. | 3 | Sold 5 identical items of merchandise to Cosmetics R Us on account at a selling price of $560 (total); terms n/30. The goods cost NGS $460. | |
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 $360 cash. The goods cost NGS $126. | |
Aug. | 22 | Cosmetics R Us paid its remaining account balance in full. |
rev: 10_27_2020_QC_CS-236985
- 2-a. Calculate the Sales Revenue and Cost of Goods Sold for the transactions listed above (but exclude Service Revenue for spa services).
- 2-b. What is Nicoles Getaway Spas gross profit percentage (excluding Service Revenue)? (Round your answer to 1 decimal place.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started