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Calculate gross profit from sales

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Reference no: EM132567638

Consider the following perpetual system merchandising transactions of Belton Company. Use a separate account for each receivable and payable; for example, record the sale on June 1 in Accounts Receivable-Avery & Wiest.

June1Sold merchandise to Avery & Wiest for $9,500; terms 2/5, n/15, FOB destination (cost of sales $6,650).

2Purchased $4,900 of merchandise from Angolac Suppliers; terms 1/10, n/20, FOB shipping point.

4Purchased merchandise inventory from Bastille Sales for $11,400; terms 1/15, n/45, FOB Bastille Sales.

5Sold merchandise to Gelgar for $11,000; terms 2/5, n/15, FOB destination (cost of sales $7,700).

6Collected the amount owing from Avery & Wiest regarding the June 1 sale.

12Paid Angolac Suppliers for the June 2 purchase.

20Collected the amount owing from Gelgar regarding the June 5 sale.

30Paid Bastille Sales for the June 4 purchase.

Question 1: Prepare General Journal entries to record the above transactions.

Question 2: Based on the information provided above, calculate the following:

a. Calculate Net sales.

b. Calculate Cost of goods sold.

c. Calculate Gross profit from sales.

Reference no: EM132567638

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