h 46 6th Ed Saved Help Save Two different companies Vogel an

h 4-6, 6th Ed) Saved Help Save Two different companies, Vogel and Hatcher, entered into the following inventory transactions during December. Both companies use a perpetual inventory system. : December 3- oel Coporation sold inventory on account to Hatcher Corp. for $240,000, terms 2/0,n/30. This inventory originally cost Vogel $160,000 . December 8- Hatcher Corp. returned inventory to Vogel Corporation for a credit of $15,000. Vogel returned this inventory to 0 inventory at its original cost of $10,000. . December 12 -Hatcher Corp. paid Vogel Corporation for the amount owed. Required a. Prepare the journal entries to record these transactions on the books of Vogel Corporation. b. What is the amount of net sales to be reported on Vogel Corporation\'s income statement? c. What is the Vogel Corporation\'s gross profit percentage? Complete this question by entering your answers in the tabs below Required A Required B Required C Prepare the journal entries to record these transactions on the books of Vogel Corporation. (If no entry is required for a transaction/event, select \"No Journal Entry Required\" in the first account field.) View transaction list

Solution

a) Journal Entry Date Accoutn Tittle & Explanation Debit Credit Dec-03 Accounts receivable $240,000.00             Sales $240,000.00 ( To record sale on account) Dec-03 Cost of goods sold $160,000.00            Inventory $160,000.00 ( To record COGS on sold inventory) Dec-08 Sales return $15,000.00           Accounts receivable $15,000.00 ( To record goods returned) Dec-08 Inventory $10,000.00         Cost of goods sold $10,000.00 ( To record cost of sales return) Dec-12 Cash $220,500.00 Discount ($225000*2%) $4,500.00          Accounts receivable $225,000.00 ( To record payment received for balance amount) Workig Note Accounts receivable = 240000 - 15000 = 225000 Discount = 225000 * 2% = 4500 Balance 225400- 4500 = 220500 is received in cash b)Net sales to be reported is Sales $240,000.00 Less : Sales return $15,000.00 Discount $4,500.00 Net Sales $220,500.00 C) Gross Profit= Net Sales - Cost of goods sold                         = $220500 - ( $160000- $10000)                         = $220500 - $150000                          = $70500 Gross profit % = gross profit / Net sales * 100 =($70500/$220500)*100= 32%