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 ProfitExplanation / 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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