Write journal entries for each transaction

Assignment Help Auditing

Reference no: EM132486

Question:

Nicole's Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by selling merchandise. She sells cosmetics such as nail polish, at-home spa kits, cosmetics, and aromatherapy items. Nicole uses a perpetual inventory system and is starting to realize all of the work that is created when inventory is involved in a business. The subsequent transactions were selected from among those completed by NGS in August.

Aug. 2 Sold 10 items of merchandise to Salon World on account at a selling price of $1,000 (total); terms 2/10, n/30. The goods cost NGS $650.

Aug. 3 sold five identical items of merchandise to Cosmetics R Us on account at a selling price of $825 (total); terms 2/10, n/30. The goods cost NGS $400.

Aug. 6 Cosmetics R Us returned one of the items purchased on August 3. The item would still be sold by NGS in the future, and credit was provided to the customer.

Aug. 10 Collected payment from Salon World, fully paying off the account balance.

Aug. 20 Sold 2 at-home spa kits to Meghan Witzel for $300 cash. The goods cost NGS $96.

Aug. 22 Cosmetics R Us paid its remaining account balance in full.

Requirement 1:

Write journal entries for each transaction. (Omit the "$" sign in your response.)

Date General Journal Debit Credit

Requirement 2:

Determine the amount of Net Sales and Cost of Goods Sold for the transactions given above. What is Nicole's Getaway Spa's gross profit percentage?

Net Sales $

Cost of Goods Sold $

Gross profit percentage %

Additional Requirements

Reference no: EM132486

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