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Two different companies, Vogel and Hatcher, entered into the following inventory transactions during December. Both companies use a perpetual inventory system. December 3 Vogel Corporation
Two different companies, Vogel and Hatcher, entered into the following inventory transactions during December. Both companies use a perpetual inventory system.
- December 3 Vogel Corporation sold inventory on account to Hatcher Corp. for $490,000, terms 2/10, n/30. This inventory originally cost Vogel $308,000.
- December 8 Hatcher Corp. returned inventory to Vogel Corporation for a credit of $4,100. Vogel returned this inventory to inventory at its original cost of $2,577.
- December 12 Hatcher Corp. paid Vogel Corporation for the amount owed.
Required:
- Prepare the journal entries to record these transactions on the books of Vogel Corporation.
- What is the amount of net sales to be reported on Vogel Corporations income statement?
- What is the Vogel Corporations gross profit percentage?
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