The following transactions for Salem Tire, Inc., occurred during November (Click the icon to view the transactions.) Requirements 1. Journalize the transactions on the books of Salem Tire, Inc. assuming the "net" method is used. 2. What was Salem Tire, Inc.'s gross profit for the month of November? Nov 4 Purchased $5,900 of merchandise an account from Peter's Tire. Terms, 1/15, 145, FOB shipping point. Peter's Tire prepaid the $175 shipping cost and added the amount to the invoice. 7 Purchased $600 of supplies on account from Staples Depot. Terms, 1/10, 1/30, FOB destination. 9 Sold $900 (cost, $250) of merchandise on account to D. Fraser. Terms, 2/15, n/45, FOB destination. 11 Paid $95 freight charges to deliver goods to D. Fraser. 13 Returned $500 of the merchandise purchased on November 4 and received a credit. 15 Sold $1,550 (cost, $175) of merchandise to cash customers. 16 Paid for the supplies purchased on November 7. 18 Paid Peter's Tire the amount due from the November 4 purchase in full. 20 D. Fraser returned $400 (cost, $200) of merchandise from the November 9 sale. 22 Purchased $4,500 of inventory. Paid cash. 23 Received payment in full from D. Fraser for the November 9 sale. 30 The refund liability for the month of November was estimated to be $200. The cost of goods estimated to be returned was $80. Requirement 1. Journalize the transactions on the books of Salem Tire, Inc. assuming the "net" method is used. (Record debits first, then credits. Exclude explanations from any journal entries.) Requirement 2. What was Salem Tire, Inc.'s gross profit for the month of November? Begin by selecting the formula, and then enter the amounts to determine gross profit for the month. Gross profit = The following transactions for Salem Tire, Inc., occurred during November (Click the icon to view the transactions.) Requirements 1. Journalize the transactions on the books of Salem Tire, Inc. assuming the "net" method is used. 2. What was Salem Tire, Inc.'s gross profit for the month of November? Nov 4 Purchased $5,900 of merchandise an account from Peter's Tire. Terms, 1/15, 145, FOB shipping point. Peter's Tire prepaid the $175 shipping cost and added the amount to the invoice. 7 Purchased $600 of supplies on account from Staples Depot. Terms, 1/10, 1/30, FOB destination. 9 Sold $900 (cost, $250) of merchandise on account to D. Fraser. Terms, 2/15, n/45, FOB destination. 11 Paid $95 freight charges to deliver goods to D. Fraser. 13 Returned $500 of the merchandise purchased on November 4 and received a credit. 15 Sold $1,550 (cost, $175) of merchandise to cash customers. 16 Paid for the supplies purchased on November 7. 18 Paid Peter's Tire the amount due from the November 4 purchase in full. 20 D. Fraser returned $400 (cost, $200) of merchandise from the November 9 sale. 22 Purchased $4,500 of inventory. Paid cash. 23 Received payment in full from D. Fraser for the November 9 sale. 30 The refund liability for the month of November was estimated to be $200. The cost of goods estimated to be returned was $80. Requirement 1. Journalize the transactions on the books of Salem Tire, Inc. assuming the "net" method is used. (Record debits first, then credits. Exclude explanations from any journal entries.) Requirement 2. What was Salem Tire, Inc.'s gross profit for the month of November? Begin by selecting the formula, and then enter the amounts to determine gross profit for the month. Gross profit =
