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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
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[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.
August 2 | Sold a bundle of spa services with a merchandise basket. When sold separately, the spa service part of the bundle sells for $400 and the merchandise basket normally sells for $100. 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 $80. |
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August 3 | Sold 5 identical items of merchandise to Cosmetics R Us on account at a selling price of $500 (total); terms n/30. The goods cost NGS $400. |
August 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. |
August 10 | Val Amy used one of the three spa treatments she had purchased as part of the bundle sold to her on August 2. |
August 20 | Sold two at-home spa kits to Meghan Witzel for $300 cash. The goods cost NGS $96. |
August 22 | Cosmetics R Us paid its remaining account balance in full. |
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