Required: Please complete the following Exercises.

QS 5-1 Components of income for a merchandiser

Referring to the format presented in Exhibit 5.2, calculate gross profit or loss for each of the following.

ABCDNet sales$14,000$102,000$540,000$398,000Cost of goods sold$8,000$64,000$320,000$215,000Operating Expenses$9,000$31,000$261,000$106,000

QS 5-6 Merchandise purchase transactions perpetual

Journalize each of the following transactions assuming a perpetual inventory system.

May 1: Purchased $1,200 of merchandise inventory: terms 1/10, n/30.

14: Paid for the May 1 purchase.

15: Purchased $3.000 of merchandise inventory; terms 2/15, n/30.

30: Paid for the May 15 purchase, less the applicable discount.

QS 5-7 Merchandise purchase: allowance-perpetual L03

Journalize each of the following transactions assuming a perpetual inventory system.

Aug 2: purchased $14.000 of merchandise inventory: terms 1/5, n/15.

4: Received a credit memo from the supplier confirming a $1.500 allowance regarding the August 2 purchase

17: Paid for the August 2 purchase, less the allowance.

QS 5-8 Merchandise purchase: trade discount, return-perpetual L03

Prepare journal entries to record each of the following transactions of a merchandising company. Show any supporting calculations. Assume a perpetual inventory system.

March 5: Purchased 500 units of product with a list price of $5 per unit. The purchaser was granted a trade discount of 20% and the terms of the sale were 2/10 n/60.

7: Returned 50 defective units from the March 5 purchase and received full credit.

15: Paid the amount due resulting from the March 5 purchase, less the return on March 7.

QS 5-10 Sale of merchandise transactions-perpetual L03

Journalize each of the following transactions assuming a perpetual inventory system.

Sept 1: Sold merchandise to JenAir for $6.000 (cost of sales $4,200); terms 2/10, n/30.

14: Collected the amount owing regarding the September 1 sale to JenAir.

15: Sold merchandise costing $1,500 to Dennis Leval for $1.800. terms 2/10, n/30.

25: Collected the amount owing from the September 15 sale to Dennis Leval, less the applicable discount.

QS 5-12 Sale of merchandise: return perpetual L03

Prepare journal entries to record each of the following transactions of a merchandising company. Show any supporting calculations. Assume a perpetual inventory system.

Apr 1: Sold merchandise for $2,000, granting the customer terms of 2/10. EOM. The cost of the merchandise was Apr. $1,400

4: The customer in the April 1 sale returned merchandise and received credit for $500. The merchandise, which had 4 cost $350, was returned to inventory

11: Received payment for the amount due resulting from the Aprit 1 sale, less the return and applicable discount.

Exercise 5-2 Recording journal entries for merchandise purchase transactionsperpetual LO3

Journalize each of the following transactions assuming a perpetual inventory system.

Feb 1: Purchased $17,000 of merchandise inventory: terms 1/10.n/30.

5: Purchased for cash $8.200 of merchandise inventory.

Feb 6: Purchased $22.000 of merchandise inventory: terms 2/15, n/45

9: Purchased $1.900 of office supplies: terms r/15

10: Contacted a major supplier to place an order for $200,000 of merchandise in exchange for a 30% trade discount to be shipped on April 1 FOB destination

11: Paid for the merchandise purchased on February 1

Mar 24: Paid for the office supplies purchased on February 9.

23: Paid for the February 6 purchase.

Exercise 5-3 Recording journal entries for merchandise purchase transactions-perpetual L03

Jaleh Mehr is the owner of the retail store 151 Jeans. She purchases jeans from a number of manufacturers to bring great style and fit to her customers. Prepare journal entries for March 2017 to record the following transactions. Assume a perpetual inventory system.

2: Purchased jeans from Paige Denim under the following terms: $4,200 invoice price. 2/15, n/60, FOB shipping point.

3: Paid $350 for shipping charges on the purchase of March 2.

Mar 4: Returned to Paige Denim unacceptable merchandise that had an invoice price of $400.

17: Sent a cheque to Paige Denim for the March 2 purchase, net of the returned merchandise and applicable discount.

18: Purchased jeans from J Brand under the following terms: $9,600 invoice price, 2/10, n/30, FOB destination.

21: After brief negotiations, received from J Brand a $2.100 allowance on the purchase of March 18.

28: Sent a cheque to J Brand paying for the March 18 purchase, net of the discount and the allowance.

Exercise 5-4 Recording journal entries for merchandise sales transactions perpetual L03

Journalize each of the following transactions assuming a perpetual inventory system. You are not required to identify the account number in your journal entries

Jan 5: Sold merchandise to a customer for $6,800; terms 1/10, n/30 (cost of sales $4,080), Jan.

7: Made a cash sale of $5,100 of merchandise to a customer today (cost of sales $3,060).

8: Sold merchandise for $12.400; terms 1/10, n/30 (cost of sales $7,440).

15: Collected the amount owing from the credit customer of January 5.

Feb 4: The customer of January 8 paid the balance owing.