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Need help with number 1, 2 and 4 please! Campus Stop, Inc., is a student co-op.

ID: 2542695 • Letter: N

Question

Need help with number 1, 2 and 4 please!

Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $158,710). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) $289,900 for cash refund (original cost of merchandise $900). c. Sold merchandise (costing $12,150) to a customer on account with terms 2/10, n/30. d. Collected half of the balance owed by the customer in (c) within the discount period. e. Granted a partial allowance relating to credit sales that the customer in (c) had not yet paid. 1700 27,000 13,230 1.940 References Section Break CP6-3 Recording Cash Sales, Credit Sales, Sales Discounts, Sales Returns, and Sales Allowances and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5 1.33 points CP6-3 Part 1 Required 1. Compute Sales Revenue, Net Sales, and Gross Profit for Campus Stop Sales Revenue Net Sales Gross Profit

Explanation / Answer

Answer

Sales

Cost of Goods Sold

Discount

Received

a.

289900

158710

b.

-1700

-900

c.

27000

12150

d.

270

13230

e.

1940

Total

315200

169960

2210

13230

Sales Revenue

$316900

(-) Returns

1700

(-) Discount and Allowances

2210

Net Sales

$312990

(-) Cost of Goods Sold

169960

Gross Profit

$143030

Gross Profit

$143030

Net Sales

$312990

GP %

45.70%

Current Gross Profit

$143030

(+) Sales

$22000

(-) Cost of Goods sold

$14300

New gross profit

$150730

Increase in GP

$7700

New GP %

45.00%

Gross Profit

INCREASES

by

$7700

GP %

DECREASES

to

45.00%

Sales

Cost of Goods Sold

Discount

Received

a.

289900

158710

b.

-1700

-900

c.

27000

12150

d.

270

13230

e.

1940

Total

315200

169960

2210

13230

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