The Journal Entry: 2 is Record the cost of goods sold of $297,350. 3 is Record the return by a customer of unsatisfactory merchandise that was in perfect condition. A cash refund of $5,700 was given to the custom. 4. Record the merchandise returned by the customer back into inventory. The original cost of the merchandise was $3,700. 5. Record the sales on account of $12,200 on terms n/30. 6. Record the cost of goods sold of $7,320. 7. Record the collection of half of the balance of $6,100 owed by the customer within the discount period 8.Record the allowance of $1,850 granted to the customer.

Required information [The following information applies to the questions displayed below.] Larry's Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $635,000 a. Sold merchandise for cash (cost of merchandise $297,350). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $3,700). c. Sold merchandise (costing $7,320) 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. 5,700 12,200 6,100 1,850 Required: 1. Compute Net Sales and Gross Profit for LBS. Net Sales Gross Profit Journal entry worksheet 1 2 3 4 5 6 7 8 > Record the cash sales of $635,000. Note: Enter debits before credits. Transaction General Journal Debit Credit a(1) Record entry Clear entry View general journal