The following three transactions occurred during April between Dick's Sporting Goods (purchaser) and Nike (seller). Both companies use a perpetual inventory system.

April 5 Dick's Sporting Goods purchased merchandise from Nike with an invoice price of $420,000 and credit terms of 1/10, n/30. The merchandise had cost Nike $200,000 to manufacture.

April 7 Dick's Sporting Goods returned $12,000 of merchandise to Nike (that had cost Nike $8,000 to manufacture).

April 14 Dick's Sporting Goods paid for the merchandise, taking advantage of any potential discounts.

Requirements:

1. Prepare journal entries for April 5, 7 & 14 on the books of Dick's Sporting Goods (the purchaser). You may cut and paste this template to format your journal entry, or just type your answer in the response box -- but please indicate the date, account(s) being debited and the amount, account(s) being credited and the amount for each journal entry. Skip a line in between entries.

Date	Accounts	Debit	Credit

2. Calculate the following for Nike (show computations if you wish to be considered for partial credit; no journal entries needed):

A. Net Sales for April

B. Cost of Goods Sold for April

C. Gross Profit for April