Date
Feb-01
Feb-05
Feb-06
Feb-09
Feb-10
Feb-11
Feb-24
Mar-23
DR CR
Purchase 17100
Account payable 17100
to record purchase of merchandise inventory for trems
2/10,n /30
Purchase 8300
cash 8300
to record purchase of merchandise inventory for cash
purchase 22100
account payable 22100
to record purchase of office supplies for terms n/15
office supplies 1950
account payable 1950
to record purchase of office supplies for terms n /15
no entry required
account payable 17100
purchase discount 342
cash 16758
to record payment of merchandise purchased Feb 1
account payable 1950
cash 1,950
to record payment of office supplies purchased on Feb 9
account payable 22,100
cash 22,100
to record payments of Feb 6 purchase
Date
Feb-01
Feb-02
Feb-03
Feb-04
Feb-11
Feb-23
Feb-28
DR CR
account receivable 2,100
sale 2,100
to record sales of merchandise with terms
2/10 , n/30 FOB destination
delivery expenses 225
cash 225
to record cost to ship merchandise sold
Feb-01
sales returns and allowance 1050
account receivable 1050
to record returns of merchandise sold Feb 1
account receivable 3800
sales 3800
to record sales of merchandise for terms
2/10 ,n /30 FOB destination
cash 1029
sales discount 21
account receivable 1050
to record collection of payments from Feb 1 sales
Cash 1200
Sales 1200
to record sales for merchandise cash
Cash 3800
account receivable 3800
to record collection of Feb 1 sale
beginning inventory
plus : purchase
goods available for sale
less : ending inventory
cogs : cost of goods sold
a
calculations of net sales
sales
less: sales return and allowance
net sales
b
merchandise inventory
purchase
less: purchase discount
less: purchase returns and v allowances
transportation in
goods available for sale
less: ending inventory
costs of goods sold
Sales
less sales return and allowance
Net sales
Costs of goods sold
merchandise inventory, March 31 ,2020
purchase
less : purchase discount
purchase discount allowance
net purchase
add : transportation in
Cost of goods purchased
Goods available for sale
less : merchandise inventory April 30,2020
costs of goods sold
Gross profit from sales
operating expense :
wages expenses, selling
depreciation expense, delivery trucks
telephone expense ,store
total selling expense
General administrative expenses :
wages expenses, office
telephone expenses , office
total general administrative expenses
Total operating expense
operating losses
Other revenues and expenses
loss
calculations of net sales
38,200
return and allowance 1,830
36370
dise inventory 6,600
17,040
hase discount -37
hase returns and v allowances -110
470
ailable for sale 23,963
ng inventory -2,550
21,413
John's electronics
Income statement
for month ended 2020
38200
return and allowance 1830
36370
dise inventory, March 31 ,2020 6600
17040
hase discount 37
discount allowance 110
16893
sportation in 470
ods purchased 17363
ailable for sale 23963
chandise inventory April 30,2020 2550
21413
fit from sales 14957
penses, selling 8900
tion expense, delivery trucks 730
e expense ,store 430
100600
administrative expenses :
penses, office 5800
e expenses , office 150
eral administrative expenses 5950
rating expense 16010
-1053
enues and expenses -130
-1183
a. selling price = cost ×(1+markup %) tank top
pull over
b.
mark up percentage = selling price
cost
c. gross profit margin= net sales- cost of goods sold
net sales
tank tops pullovers yoga pants
sales price 32 48 70
cost 20 30 40
gross profi 12 18 30
gross profi 37.50 37.50 42.86%
d. 36.36 54.55 72.73
selling price = cost
(1-target margin percentage)
20 1.6 32
30 1.6 48
yoga pants
selling price 70
0.75
