The following informet Larrys Building Supplies LBS Is a loc

[The following informet Larry\'s Building Supplies (LBS) Is a local hardware store. LBS uses a perpetual Inventory system. The following transactions (summarized) have been selected for analysis: tion applies to the questions displayed below] a. Sold merchandise for cash (cost of merchandise $273,350) b. Recelved merchandise returned by customers as unsatisfactory (but In perfect condition) $590,000 for cash refund (original cost of merchandise $3100) c. Sold merchandise (costing $5,880) 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. 4,800 9,800 4,802 e. Granted a partial alowance relating to credit sales that the customer in (c) hed not yet paid.1550

Solution

Gross sales 599800 Less Sales discount 98 Sales return and allowance 6350 6448 Net sales 593352 Cost of goods sold 276130 (273350-3100+5880) Net sales 593352 Less Cost of goods sold 276130 Gross profit 317222 Gross profit percentage = Gross profit / net sales Gross profit 317222 Net sales 593352 Gross profit % 53.5% Total Net sales 26000 619352 Less Cost of goods sold 19600 295730 Gross profit 6400 323622 Gross profit % 52.3% Gross profit increase by 6400 Gross profit % decrease to 52.3%