Required information [The following information applies to the questions displayed below.] The transactions listed below are typical of those involving New Books Inc. and Readers' Corner. New Books is a wholesale merchandiser and Readers' Corner is a retail merchandiser. Assume all sales of merchandise from New Books to Readers' Corner are made with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended August 31. a New Books sold merchandise to Readers' Corner at a selling price of $600,000. The merchandise had cost New Books $435.000 b. Two days later, Readers' Corner complained to New Books that some of the merchandise differed from what Readers' Corner had ordered. New Books agreed to give an allowance of $15,000 to Readers' Corner Readers' Corner also returned some books, which had cost New Books $3,000 and had been sold to Readers' Corner for $4,500. C. Just three days later, Readers' Corner paid New Books, which settled all amounts owed. Required: 1. For each of the events (a) through (d, indicate the amount and direction of the effect on New Books in terms of the following items. (Enter any decreases to account balances with a minus sig Transaction Sales Revenues Sales Returns Sales Allowances Net Sales Cost of Goods Sold Gross Profit a b C The transactions listed below are typical of those involving New Books Inc. and Readers' Corner. New Books is a wholesale merchandiser and Readers' Corner is a retail merchandiser. Assume all sales of merchandise from New Books to Readers' Corner are made with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended August 31. a New Books sold merchandise to Readers' Corner at a selling price of $600,000. The merchandise had cost New Books $435,000 b. Two days later, Readers' Corner complained to New Books that some of the merchandise differed from what Readers' Corner had ordered. New Books agreed to give an allowance of $15,000 to Readers' Corner Readers' Corner also returned some books, which had cost New Books $3,000 and had been sold to Readers' Corner for $4,500. C. Just three days later, Readers' Corner paid New Books, which settled all amounts owed. 2. Prepare the journal entries to record New Books transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the sales on account of $600,000 to Readers' Corner on terms n/30. Note: Enter debits before credits General Journal Transaction a(1) Debit Credit Required information [The following information applies to the questions displayed below) Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $59,200 a. Sold merchandise for cash (cost of merchandise $32,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $420). c. Sold merchandise (costing $5,700 ) to a 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 sales the customer in (c) had not yet paid. 700 12,000 6,000 192 Required: 1. Compute Net Sales and Gross Profit for Hair World. Net Sales Gross Profit ! Required information [The following information applies to the questions displayed below] Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transaction (summarized) have been selected for analysis $59,200 a. Sold merchandise for cash (cost of merchandise $32,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $420 ). c. Sold merchandise (costing $5,700 ) to a 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 sales the customer in (c) had not yet paid. 700 12,000 6,000 192 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.) Gross Profit Percentage % Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $59,200 a. Sold merchandise for cash (cost of merchandise $32,797) b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $420 ). c. Sold merchandise (costing $5,700 ) to a 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 sales the customer in (c) had not yet paid. 700 12,000 6,000 192 3. Prepare journal entries to record transactions (a)-(e) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the cash sales of $59,200. Note: Enter debits before credits Transaction General Journal Debit Credit a(1) Required information [The following information applies to the questions displayed below.] Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transacti (summarized) have been selected for analysis: $59,200 a. Sold merchandise for cash (cost of merchandise $32,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $420 ). c. Sold merchandise (costing $5,700 ) to a 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 sales the customer in (c) had not yet paid. 700 12,000 6,000 192 4. Hair World is considering a contract to sell merchandise to a hair salon chain for $17,000. This merchandise will cost Hair $10,960. What would be the increase (or decrease) to Hair World's gross profit and gross profit percentage? (Round "Grc Percentage" to 1 decimal place.) by Gross Profit Gross Profit Percentage to % Le Tonowing information applies to the questions displayed below. Big Tommy Corporation is a local grocery store organized seven years ago as a corporation. The bookkeeper prepared the following statement at year-end (assume that all amounts are correct, but note the incorrect format): BIG TOMMY CORPORATION Profit and Loss December 31 Debit Credit $ 422,700 Net Sales Cost of Goods Sold Salaries and Wages Expense Office Expenses Travel Expenses Income Tax Expense Net Profit Totals $287,000 60,000 17,500 1,000 17,160 40,040 $422,700 $422,700 Required: 1. Prepare a properly formatted multistep income statement that would be used for external reporting purposes. BIG TOMMY CORPORATION Income Statement Required information [The following information applies to the questions displayed below.] Big Tommy Corporation is a local grocery store organized seven years ago as a corporation. The bookkeeper prepared the following statement at year-end (assume that all amounts are correct, but note the incorrect format). BIG TOMMY CORPORATION Profit and Loss December 31 Debit Credit $422,700 Net Sales Cost of Goods Sold Salaries and Wages Expense Office Expenses Travel Expenses Income Tax Expense Net Profit Totals $287,000 60,000 17,500 1,000 17,160 40,040 $422,700 $422,700 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.) Gross Profit Percentage %