Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

the qu [The following information appies Kelly Creations is a wholesaler of hair supplies, Kelly Creations uses a perpetual inventory system. The following transactions (summarized)

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
the qu [The following information appies Kelly Creations is a wholesaler of hair supplies, Kelly Creations uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $ 59,520 380 17,800 8.900 a. Sold merchandise for cash (cost of merchandise $33,477). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $350). c. Sold merchandise (costing $8,455) to a customer on account with terma n/60. d. Collected half of the balance owed by the customer in (e), .. Granted a partial allowance relating to credit anles the customer in (c) had not yet paid. 1. Anticipate further returns of merchandise (conting $270) after year and from sales made during the year. 186 390 PA6-3 (Algo) Part 1 Required: 1. Compute Net Sales and Gross Profit for Kelly Creations. Net Sales Gross Profit 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.) Gross Profit Percentage % Journal entry worksheet Sold merchandise for $59,520 cash. Record the entry. Note: Enter debits before credits. Transaction General Journal Debit Credit a(1) 10 1 Sold merchandise for $59,520 cash. Record the entry. 2 The merchandise sold had a cost of $33,477. Record the entry. 3 Received merchandise returned by customers as unsatisfactory (but in perfect condition) for $380 cash refund. Record the entry. Credit 4 The merchandise returned had a cost of $350. Record the entry. 5 Sold merchandise to a customer for $17,800 on account with terms n/60. Record the entry. Note: - Journal entry has been entered Record entry Clear entry View general Journa 10 5 Sold merchandise to a customer for $17,800 on account with terms n/60. Record the entry. 6 The merchandise sold had a cost of $8,455. Record the entry. 7 Collected half of the $17,800 balance owed by the customer in transaction c. Record the entry. Credit 8 Granted a partial $186 allowance relating to credit sales the customer in transaction c had not yet paid. Record the entry, 9 Anticipate further returns of merchandise after year-end from $390 sales made during the year. Record the entry. Note : = journal entry has been entered Rodant nnala VIDROLIAN 0 Required information EX! 10 6 The merchandise sold had a cost of $8,455. Record the entry 7 Collected half of the $17,800 balance owed by the customer in transaction c. Record the entry. 8 Granted a partial $186 allowance relating to credit sales the customer in transaction c had not yet paid. Record the entry Credit 9 Anticipate further returns of merchandise after year-end from $390 sales made during the year. Record the entry. 10 The anticipated merchandise returns have a cost of $270. Record the entry. Note : journal entry has been entered 4. Kelly Creations is considering a contract to sell merchandise to a hair salon chain for $41000. This merchandise will cost Kelly Creations $26,900. What would be the increase for decrease) to Kelly Creations gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) by Gross Profit Gross Profit Percentage to %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Non-Accountants

Authors: David Horner

10th Edition

0749472812, 978-0749472818

More Books

Students explore these related Accounting questions

Question

Explain the legal term assumption of risk .

Answered: 3 weeks ago