Two different companies, Ripper and Berners, entered into the following inventory transactions during December. Both companies use a perpetual inventory system.

December 3 Ripper Corporation sold inventory on account to Berners Corp. for $481,000, terms 1/10, n/30. This inventory originally cost Ripper $310,000.

December 8 Berners Corp. returned inventory to Ripper Corporation for a credit of $3,300. Ripper returned this inventory to inventory at its original cost of $2,127.

December 12 Berners Corp. paid Ripper Corporation for the amount owed.

Required:

a. Prepare the journal entries to record these transactions on the books of Ripper Corporation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1. Record the entry for sale of inventory on account

2. Record the entry for cost of inventory sold on account from inventories

3. Record the entry for return of inventory sold on account

4. Record the entry for reversal of cost of inventory sold on account

5. Record the entry for receipt of accounts receivable and related sales discount for terms 1/10, n/30.

B. What is the amount of net sales to be reported on Ripper Corporations income statement?

Net Sales: $.......

C. What is the Ripper Corporations gross profit percentage?

Gross Profit: ....... %