Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System The following were selected from among the transactions completed by Harrison Company during November of the current year: Nov. 3. Purchased merchandise on account from Moonlight Co., list price $85,000, trade discount 30%, terms FOB destination, 2/10, n/30. 4. Sold merchandise for cash, $39,970. The cost of the merchandise sold was $20,650. 5. Purchased merchandise on account from Papoose Creek Co., $43,600, terms FOB shipping point, 2/10, n/30, with prepaid freight of $850 added to the invoice. 6. Returned $13,300 ($19,000 list price less trade discount of 30%) of merchandise purchased on November 3 from Moonlight Co. 8. Sold merchandise on account to Quinn Co., $15,770 with terms n/15. The cost of the merchandise sold was $9,530. 13. Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14. Sold merchandise on VISA, $259,540. The cost of the merchandise sold was $126,120. 15. Paid Papoose Creek Co. on account for purchase of November 5. 23. Received cash on account from sale of November 8 to Quinn Co. 24. Sold merchandise on account to Rabel Co., $61,800, terms 1/10, n/30. The cost of the merchandise sold was $36,570. 28. Paid VISA service fee of $3,730. 30. Paid Quinn Co. a cash refund of $1,450 for damaged merchandise from sale of November 8. Quinn Co. kept the merchandise.

2)

1. Gross method for sales discounts

   The following were selected from among the transactions completed by Essex Company during March of the current year:

   Mar.	2.		Sold merchandise on account to Parsley Co., $32,000, terms 1/10, n/30. The cost of the merchandise sold was $18,500.
   	8.		Sold merchandise on account to Tabor Co., $24,000, terms 2/10, n/30. The cost of the merchandise sold was $14,400.
   	11.		Received payment on account for the sale of March 2 less the discount.
   	20.		Received payment on account for the sale of March 8.

   Journalize the March transactions using the gross method of recording sales discounts. If an amount box does not require an entry, leave it blank.

   Mar. 2		fill in the blank 2	fill in the blank 3
   		fill in the blank 5	fill in the blank 6
   Mar. 2		fill in the blank 8	fill in the blank 9
   		fill in the blank 11	fill in the blank 12
   Mar. 8		fill in the blank 14	fill in the blank 15
   		fill in the blank 17	fill in the blank 18
   Mar. 8		fill in the blank 20	fill in the blank 21
   		fill in the blank 23	fill in the blank 24
   Mar. 11		fill in the blank 26	fill in the blank 27
   		fill in the blank 29	fill in the blank 30
   		fill in the blank 32	fill in the blank 33
   Mar. 20		fill in the blank 35	fill in the blank 36
   		fill in the blank 38	fill in the blank 39

3)

Gross Profit

During the current year, merchandise is sold for $194,200 cash and $652,500 on account. The cost of merchandise sold is $550,400. What is the amount of the gross profit? $fill in the blank 1

4)

Inventory Turnover

The following data (in millions) were taken from recent annual reports of Tomato Computer, Inc., a manufacturer of personal computers and related products, and Happy Times Corporation, a manufacturer and distributor of greeting cards and related products:

	Tomato		Happy Times
Cost of merchandise sold	$5,465,600		$2,635,200
Inventory, end of year	139,000		164,000
Inventory, beginning of the year	85,000		202,000

a. Determine the inventory turnover for Tomato and Happy Times. Round to one decimal place.

Tomato	fill in the blank 1
Happy Times	fill in the blank 2