Answered step by step
Verified Expert Solution
Question
1 Approved Answer
[The following information applies to the questions displayed below.] Campus Stop, Inc, is a student co-op. Campus Stop uses a perpetual inventory system. The following
[The following information applies to the questions displayed below.] Campus Stop, Inc, is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $150,e30) b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund $270,606e (original cost of merchandise $770) c. Sold merchandise (costing $8,100) to a customer on account with terms n/30. 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. 1,720 18,000 9,000 1,760 Required: 1. Compute Net Sales and Gross Profit for Campus Stop. Net Sales S 284,520 S 157,360 Gross Profit 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 2 4 6 7 8 Record the cash sales of $270,600 Note: Enter debits before credits. Transaction General Journal Debit Credit a(1) Cash Journal entry worksheet 2 3 4 5 6 7 8 Record the cost of goods sold of $150,030 Note: Enter debits before credits. Transaction General Journal Debit Credit a(2) Journal entry worksheet 1 2 3 4 6 7 8 Record the return by a customer of unsatisfactory merchandise that was in perfect condition. A cash refund of $1,720 was given to the customer. Note: Enter debits before credits. Transaction General Journal Debit Credit Journal entry worksheet 1 2 3 4 6 7 8 Record the merchandise returned by the customer back into inventory. The original cost of the merchandise was $770. Note: Enter debits before credits. Transaction General Journal Debit Credit b(2) Journal entry worksheet 1 2 3 4 6 7 8 Record the sales on account of $18,000 on terms n/30. Note: Enter debits before credits. Transaction General Journal Debit Credit
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