E5-2B. Journal Entries for Sale, Return, and RemittancePerpetual System On October 14, the Henry Company sold...

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E5-2B. Journal Entries for Sale, Return, and Remittance—Perpetual System On October 14, the Henry Company sold merchandise with an invoice price of $1,300 ($750 cost), with terms of 1/10, n/30, to the Baxter Company. On October 18, $300 of merchandise ($175 cost) was returned because it was the wrong size. On October 24, the Henry Company received a check for the amount due from the Baxter Company. Required Prepare the journal entries for the Henry Company using the perpetual inventory system. E5-5B. Recording Purchases—Perpetual System On September 12, Burt, Inc., purchased merchandise for $4,800, with terms of 2/10, n/30. On September 16, the firm returned $500 of the merchandise to the seller. Payment of the account occurred on September 19. Burt uses the perpetual inventory system. Required Prepare the journal entries for September 12, September 16, and September 19. b. Assuming that the account was paid on September 25, prepare the journal entry for payment on that date. E5-6B. Profitability Analysis Shannon Enterprises reports the following information on its year-end income statement: Net sales... Cost of goods sold $200,000 130,000 Operating expenses Other income Required Calculate Shannon's gross profit percentage and return on sales ratio. $20,000 10,000 E5-2B. Journal Entries for Sale, Return, and Remittance—Perpetual System On October 14, the Henry Company sold merchandise with an invoice price of $1,300 ($750 cost), with terms of 1/10, n/30, to the Baxter Company. On October 18, $300 of merchandise ($175 cost) was returned because it was the wrong size. On October 24, the Henry Company received a check for the amount due from the Baxter Company. Required Prepare the journal entries for the Henry Company using the perpetual inventory system. E5-5B. Recording Purchases—Perpetual System On September 12, Burt, Inc., purchased merchandise for $4,800, with terms of 2/10, n/30. On September 16, the firm returned $500 of the merchandise to the seller. Payment of the account occurred on September 19. Burt uses the perpetual inventory system. Required Prepare the journal entries for September 12, September 16, and September 19. b. Assuming that the account was paid on September 25, prepare the journal entry for payment on that date. E5-6B. Profitability Analysis Shannon Enterprises reports the following information on its year-end income statement: Net sales... Cost of goods sold $200,000 130,000 Operating expenses Other income Required Calculate Shannon's gross profit percentage and return on sales ratio. $20,000 10,000

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E52B Journal Entries for Sale Return and RemittancePerpetual System On October 14 the Henry Company sold merchandise with an invoice price of 1300 750 ... View the full answer