Lonny's Building Supplies (LBS) is a locally owned and operated hardware store. LBS uses a perpetual inventory system. The following transactions (summarized) have been selected from 2014:

Required
1. Compute Sales Revenue, Net Sales, and Gross Profit for LBS.
2. Compute the gross profit percentage (using the formula shown in this chapter).
3. Prepare journal entries to record transactions (a) through (e).
4. LBS is considering a contract to sell building supplies to a local home builder for $20,000. These materials will cost LBS $16,000. Would this contract increase (or decrease) LBS's gross profit and gross profit percentage? How should LBS decide whether to accept the contract?

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Sold merchandise for cash (cost of merchandise $224,350). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition), for cash refund (original cost of merchandise $1,900). a. $500,000 3,000 5,000 2,450 950 Sold merchandise (costing $3,000) to a customer, on account with terms 2/10, n/30. d. C. Collected half of the balance owed by the customer in (c) within the discount period. Granted an allowance to the customer in (c). e.