Prepare journal entries to record each pany. Show supporting calculations and as
ID: 2588334 • Letter: P
Question
Prepare journal entries to record each pany. Show supporting calculations and assume a perpeld Mar. 5 Purchased 1 1.000 units of product at a cost of $12 Refer to the invoice is dated March 5 ve units from the March 5 purchase and received s the return on March7 Recording purchases- perpetual system Pl Mar. 7 Returned 50 defecti 2Mar 15 Paid the amount due from the March 5 purchase, less the return on M ull cei that the Qs s-2 Recording sales- perpetual system Prepare journal entries to record each of the following sales transactions of Show supporting calculations and assume a perpetual inventory system. Apr I Sold merchandise for $5,000, granting the customer terms of 2/10 The cost of the merchandise is $3,000 Apr. 4 The customer in the April 1 sale returned merchandise and received merchandise, which had cost $600, is returned to inventory MAN Apr. 1 Received payment for the amount due from the April 1 sale less the re return on Aprl Qs 5-3 Computing and analyzing tory Compute net sales, gross profit, and the gross margin ratio for each separate the gross margin ratio for case a. gross margin CI A2 Sales Sales discounts Sales returns and allowances Cost of goods sold $140,000 $378,000 $42,500 $593000 1,700 6,000 400 2,500 9,000 17,000 3,400 5300 .. . . . .. 82,493 222,230 28,676 451,532 Qs 5-4 Accounting for perpetual system P3 Crystal Company's ledger on July 31, its fiscal year-end, includes the following se have normal balances (Crystal uses the perpetual inventory system) 26 Merchandise inventory $42,000 Sales returns and allowances...... les 124,900 Cost of goods sold 275,300 Depreciation expense Sales discountsExplanation / Answer
QS 5-1 JOURNAL ENTRY Date Account title and explanation Debit Credit March 5 Inventory $12,000 (1000*12) Accounts payable $12,000 (To record purchase on account) March 7 Accounts payable $600 (50*12) Purchase returns and allowances $600 (To record purchase returns) March 15 Accounts payable $11,400 (12000-600) Purchase discount $228 (2% of 11400)=228 Cash $11,172 (11400-228) (To record cash payment for purchase) QS 5-2 April 1 Accounts receivable $5,000 Sales $5,000 Cost of goods sold $3,000 Inventory $3,000 (To record sales on credit) April 4 Sales returns and allowances $600 Accounts receivable $600 Inventory $360 (3000/5000)*600= 360 Cost of goods sold $360 (To record sales return) April 11 Cash $4,312 (4400-88) Sales discount $88 (2% of 4400)=88 Accounts receivable $4,400 (5000-600) ( To record receipt of cash on credit sales) QS 5-3 Net sales=Sales-Sales discount-sales return and allowances Gross Profit=Net Sales-Cost of goods sold Gross margin ratio=Gross Profit/ Net Sales a b c d A sales $140,000 $378,000 $42,500 $593,000 B Sales discount $1,700 $6,000 $400 $2,500 C Sales return and allowances $9,000 $17,000 $3,400 $15,300 D Cost of goods sold $82,493 $222,230 $28,676 $451,532 E=A-B-C Net sales $129,300 $355,000 $38,700 $575,200 F=E-D Gross Profit $46,807 $132,770 $10,024 $123,668 G=F/E Gross margin ratio 0.362003 0.374 0.259018 0.215 Gross margin ratio(in percentage 36.20% 37.40% 25.90% 21.50% QS 5-4 Question is not complete